INDIA BUDGET
FY25 fiscal deficit target lowered to 4.9% of GDP from 5.1%
This story was originally published at 17:05 IST on 23 July 2024
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--FY24 fiscal deficit revised to 16.537 trln rupees
--FY25 fiscal deficit pegged at 16.133 trln rupees
--FY25 fiscal deficit pegged at 4.9% of GDP
NEW DELHI – The Budget today lowered the fiscal deficit target for the current financial year started April to 4.9% of GDP from 5.1% in the Interim Budget. The fiscal deficit in 2023-24 was 20 basis points lower than the revised estimate at 5.8% of GDP.
The fiscal deficit of 4.9% for 2024-25 is below the consensus estimate. According to an Informist poll, the fiscal deficit was seen at 5.0% of GDP for this year.
In absolute terms, the fiscal deficit for 2024-25 is estimated at 16.133 trln rupees, down 722 bln rupees from the Interim Budget's estimate of 16.855 trln rupees.
The government's fiscal deficit in the first two months of the current financial year was 506.15 bln rupees, down 75.9% from a year ago, according to Controller General of Accounts data. The fiscal deficit in Apr-May accounted for 3.0% of the target of 16.855 trln rupees set in the Interim Budget for 2024-25.
The government in 2021 laid out a fiscal roadmap, under which it has to lower the fiscal deficit to below 4.5% of GDP by 2025-26. "The government is committed to staying the course," Finance Minister Nirmala Sitharaman said today.
From 2026-27 onwards, the government will endeavour to keep the fiscal deficit each year such that the Centre's debt will be on a declining path as percent of GDP, she said.
The Union Budget has projected net tax collections in 2024-25 at 25.835 trln rupees, up 11% from the 23.265 trln rupees collected last year. Total receipts are pegged at 32.072 trln rupees, up 15.0% from 27.889 trln rupees in 2023-24. The total expenditure in 2024-25 is projected at 48.205 trln rupees, up 8.5% on year from the actual spending of 44.425 trln rupees in 2023-24.
The following table details the government's balance sheet (in bln rupees):
|
Budget Estimate |
Interim Budget Estimate |
Actuals |
Year-on-Year Change (%) |
|
|
2024-25 |
2024-25 |
2023-24 |
Budget estimate vs Actuals |
|
|
Revenue receipts |
31,292.00 |
30,012.75 |
27,284.12 |
14.7 |
|
Net tax revenue |
25,834.99 |
26,015.74 |
23,265.24 |
11.0 |
|
Non-tax revenue |
5,457.01 |
3,997.01 |
4,018.88 |
35.8 |
|
Non-debt capital receipts |
780.00 |
790.00 |
604.60 |
29.0 |
|
Recovery of loans |
280.00 |
290.00 |
273.38 |
2.4 |
|
Other Receipts |
500.00 |
500.00 |
331.22 |
51.0 |
|
Total receipts |
32,072.00 |
30,802.75 |
27,888.72 |
15.0 |
|
Revenue expenditure |
37,094.01 |
36,546.57 |
34,940.36 |
6.2 |
|
Interest payments |
11,629.40 |
11,904.40 |
10,638.71 |
9.3 |
|
Capital expenditure |
11,111.11 |
11,111.11 |
9,485.06 |
17.1 |
|
Total expenditure |
48,205.12 |
47,657.68 |
44,425.42 |
8.5 |
|
Revenue deficit |
5,802.01 |
6,533.83 |
7,656.24 |
(-)24.2 |
|
Revenue deficit (% of GDP) |
1.8 |
2.0 |
2.6 |
- |
|
Fiscal deficit |
16,133.12 |
16,854.94 |
16,536.70 |
(-)2.4 |
|
Fiscal deficit (% of GDP) |
4.9 |
5.1 |
5.6 |
- |
|
Primary deficit |
4,503.72 |
4,950.54 |
5,897.99 |
(-)23.6 |
|
Primary deficit (% of GDP) |
1.4 |
1.5 |
2.0 |
- |
End
Reported by Shubham Rana and Afra Abubacker
Edited by Saji George Titus
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End
US$1 = XX.XX rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by
Edited by
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000 /+91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2024. All rights reserved.
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