Key Points
Somanathan also mentioned the control over avoidable expenditure and a balanced increase in capital expenditure as factors contributing to the target..
Finance Secretary T V Somanathan has said the government's resolve to bring down the fiscal deficit by 70 basis points to 5.1 per cent in 2024-25 is ambitious but achievable in view of the tax buoyancy and expenditure management..
"On the basis of three parts, reasonable revenue growth and reasonable increase in non-tax revenue that is tight control over avoidable expenditure and an optimal balanced increase in capital expenditure we are quite confident that we will achieve this (fiscal deficit target of 5.1 per cent of GDP)," he said...
For the Budget calculation purposes, the government projected nominal GDP growth of 10.5 per cent for the next financial year against the 11 per cent estimated for the current fiscal...
Capital expenditure of Rs 11.11 lakh crore cannot be done by signing a cheque, he said, adding that it requires action on the ground because there are issues of permission, land acquisition, and construction.. "So it is a very realistic and balanced provision, which is what the economy needs right now," he said.. (You can now subscribe to our Economic Times WhatsApp channel)..
You might be interested in
Centre's fiscal deficit narrows to 6.4 pc of GDP in FY23
31, May, 23In the Union Budget, the government aimed to further bring down the fiscal deficit -- a key indicator of borrowing -- during the current financial year 2023-24 to 5.9 per cent of the gross domestic product
Govt debt stands at Rs 155.6 lakh cr in March 2023
01, Aug, 23The central government's debt stood at Rs 155.6 lakh crore or 57.1 per cent of the GDP at the end of March 2023, Parliament was informed on Tuesday. The Central Government's debt was Rs 155.6 lakh crore as on March 31, 2023. It has reduced from 61.5 per cent of GDP in 2020-21 to 57.1 per cent of GDP in FY 2022-23, Minister of State for Finance Pankaj Chaudhary said in a written reply to the Rajya Sabha.
India's fiscal deficit at Rs 6.4 lakh cr in April-Aug, 36% of full-year target: CGA
29, Sep, 23In absolute terms, the fiscal deficit — the gap between expenditure and revenue — was Rs 6.42 lakh crore as of August-end, according to the data released by the Controller General of Accounts (CGA).
Fiscal deficit touches 82.8 pc of full-year target in February: Government
31, Mar, 23For the full year 2022-23, the government expects the deficit at Rs 17.55 lakh crore or 6.4 per cent of the GDP.
Meeting 5.9% fiscal deficit target may get a tad tougher
05, Jan, 24The Indian government faces challenges in achieving its 5.9% fiscal deficit ratio due to a lower-than-anticipated nominal GDP in FY24. The government must either reduce spending by ₹37,000 crore or increase revenue from the budgeted levels. The fiscal deficit is expected to be ₹17,49,807 crore, slightly breaching the target and reaching 6% of GDP.
Punjab to miss fiscal targets by a wide margin due to freebies: India Ratings
07, Apr, 23The AAP government's freebies push in Punjab will have the state, which already is one of the most fiscally stressed states, missing the fiscal targets by a wide margin yet again this fiscal, shows an analysis.
Centre's fiscal deficit at 55 pc full-year target at Dec-end 2023: CGA
31, Jan, 24New Delhi, Jan 31 (PTI) The Union government’s fiscal deficit touched Rs 9.82 lakh crore or 55 per cent of the annual Budget target at December-end 2023, according to data released by the Controller General of Accounts (CGA) on Wednesday. In the corresponding period last year, the deficit was 59.8 per cent of the budget […]
Revealed: The growth, deficit assumptions behind the next budget
22, Jan, 24The nominal growth rate assumption always doesn't pan out, but are necessary to plan out spending and budgetary allocation
Interim Budget for FY25 to be realistic: Official
15, Nov, 23The government had budgeted total expenditure at ₹ 45 lakh crore for FY24, while its tax and non-tax revenue was pegged at ₹26.3 lakh crore. The government is sticking to its budgeted FY24 nominal GDP growth rate (10.8% upon the revised base) for now, he said, indicating that any change in the pace of expansion is unlikely to disrupt the fiscal deficit ratio target.
Govt confident in meeting FY24 fiscal deficit target, says DEA secretary
29, Nov, 23Ajay Seth also reiterated the commitment to reducing the fiscal deficit to 4.5% of GDP by FY26