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Fiscal Deficit Target Lowered to 5.8% in Interim Budget
Published On : 2024-02-01T15:02:59+0530 [ IST ] |
Author : Mayur_Tembhare
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FM Nirmala Sitharaman with Budget 2024
India / New Delhi :
Finance Minister Nirmala Sitharaman today lowered the fiscal deficit target to 5.8% of GDP for 2023-2024, down from 6.4% for the current year.
The narrower fiscal deficit target signals the government's intent to pursue fiscal consolidation, after COVID-19 led to higher spending and borrowing.
However, some economists argue the fiscal deficit estimate seems optimistic given global economic headwinds. Sitharaman stated buoyant tax collections and non-tax receipts will offset higher expenditure and enable meeting the fiscal target.
Despite fiscal constraints, the budget continues to focus on growth-oriented capex and avoids any major tax changes. The government aims to strike a balance between fiscal prudence and supporting growth in an election year.
Effective fiscal consolidation while boosting growth remains a key challenge. The budget projects a fiscal deficit target of below 4.5% by 2025-2026.
Source : Sansad TV
Tags : fiscal deficit , fiscal consolidation , buoyant tax revenue , lower target , expenditure growth ,
Summary : The budget lowers the fiscal deficit target to 5.8% of GDP for 2023-24 from 6.4% this year, signaling commitment to fiscal consolidation while balancing growth needs.
Adversitement