Key Points
The Centre will rein in the fiscal deficit at the targeted 6.4% of the gross domestic product in the current financial year despite some likely variations in revenues and expenditures from the respective revised estimates, economic affairs secretary Ajay Seth told FE...
Seth said a 6.5% economic growth next year appears to be likely and reasonable and any adverse impact of the banking crisis in the advanced economies on India by way of capital outflows would be manageable, thanks to strong forex reserves...
On the apprehension of a modest slippage from the fiscal deficit target for the current year due to a likely shortfall in tax revenues, the official said given the large Budget with several spending and revenue collection heads, there will always be some variations under some heads...
The revised capex target of Rs 7.3 trillion would, however, be met in FY23, he said.. Given the pluses and minuses, we are fairly confident that the 6.4% fiscal deficit target will be met, Seth said, adding that theres absolutely no restriction on any ministry when it comes to spending up to the revised estimate (RE) level..
With the Second Supplementary Demands for Grants for FY23 placed before Parliament on March 13, seeking nod to spend an additional Rs 1.48 trillion on a net basis, analysts suggested a modest deviation may be there in fiscal deficit from the RE level of Rs 17.55 trillion..
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