Key Points
North Block is expected to lower its fiscal deficit target meaningfully in FY25, in line with the post-Covid consolidation roadmap, but the Centre's gross debt sales will likely remain at this FY's record levels despite New Delhi expectedly slowing the pace of investments in capital assets...
A slower pace of capital expenditure - after three years of a firm push in that area - may give the Centre the room to bring its fiscal deficit target down by 50-60 basis points to a range of 5.3-5.4% of GDP in FY25 from 5.9% pencilled in this year..
Gross market borrowing, which represents the actual supply of government bonds hitting the market, is seen at 15.3 lakh crore in FY25, the median of estimates provided by 11 banks, rating agencies and research houses to ET showed...
HSBC's economists, who estimated the gross borrowing at 15.2 lakh crore for FY25, said that figure represented 4.6% of GDP, down from 5.2% in the current fiscal year..
The government, which on February 1 will announce the interim Budget for the next financial year, is committed to bringing down its fiscal deficit target to a level lower than 4.5% of GDP by FY26.. High Borrowings..
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