India's fiscal deficit reduced to Rs 1.4 trillion during April-June 2024, down from Rs 4.5 trillion reported in the same period last year, according to a report by Anand Rathi Equity, a financial services company.
The India budget for the fiscal year 2024-25, presented on Tuesday, reflects a clear commitment to maintaining economic stability and fostering growth through substantial capital expenditure (capex) investments.
"We believe that it (fiscal deficit) should be achievable as the government's assumption of 10.5 per cent nominal GDP growth in 2024-25 is modestly below our current forecast. We think the government should also be able to achieve its goal of reducing the deficit below 4.5 per cent of GDP in
Soon after presentation of Budget 2024-25, India's G20 Sherpa and former CEO of government think tank Niti Aayog asserted that the main highlight of the annual budget was job creation.
Ajay Seth, Secretary at Department of Economic Affairs under Ministry of Finance said fiscal consolidation by way of gliding down on fiscal deficit path is being done while meeting all essential expenditure.
It is important to note that many opposition-ruled states are moving back to Old Pension Scheme, or are mulling to, facing demands from government employees and other pressure groups.
The central government kept the capital expenditure outlay at Rs 11.11 lakh crore for 2024-25, as was announced by Union Finance Minister Nirmala Sitharaman in her interim Budget, ahead of the General elections.
Presenting the Union Budget for 2024-25, Union Finance Minister Nirmala Sitharaman on Tuesday pegged the fiscal deficit target at 4.9 per cent of gross domestic product (GDP)
The fiscal deficit of the government is expected to drop to 4.5 per cent of GDP or lower by the financial year 2026, the Economic survey outlined which was tabled in parliament on Monday.
Investment banking company Goldman Sachs expects the central government to stick to the announced fiscal deficit target of 5.1 per cent of GDP for 2024-25 in the upcoming Budget to be tabled on July 23 and announce further consolidation to a deficit of below 4.5 per cent in 2025-26.