Finance Minister Nirmala Sitharaman introduced the Union Budget 2024 in Parliament as we speak, February 1, 2024. (Image: PTI)
FM Nirmala Sitharaman mentioned the fiscal deficit for 2024-25 is estimated at 5.1 per cent of GDP in opposition to 5.8 per cent within the present monetary 12 months.
Interim Budget 2024: The authorities continues to be on the trail of fiscal consolidation to scale back the fiscal deficit to 4.5 per cent in 2025-26, mentioned Finance Minister Nirmala Sitharaman whereas presenting the interim price range.
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Sitharaman hiked capital expenditure by 11 per cent for the subsequent fiscal to maintain the financial development price whereas trimming the deficit in a reform-oriented interim price range trimming the fiscal deficit for this monetary 12 months to five.8 per cent, from the budgeted 5.9 per cent of GDP, and additional decreasing to five.1 per cent within the subsequent fiscal.
“We continue on the path of fiscal consolidation, as announced in my Budget Speech for 2021-22, to reduce the fiscal deficit below 4.5 per cent by 2025-26,” Sitharaman mentioned.
The income receipts for the present fiscal at Rs 30.03 lakh crore are anticipated to be greater than the Budget Estimate, reflecting robust development momentum and formalisation within the financial system.
Capex Raised
Sitharaman introduced that the nation’s capital spending for 2024-25 has been raised 11 per cent to Rs 11.11 lakh crore, or 3.4 per cent of GDP.
She mentioned the tripling of capex within the final 4 years has resulted in a multiplier impact on financial development and employment technology.
Fiscal Deficit
FM Nirmala Sitharaman mentioned the fiscal deficit for 2024-25 is estimated at 5.1 per cent of GDP in opposition to 5.8 per cent within the present monetary 12 months.
Sitharaman mentioned tax receipts for 2024-25 are projected at Rs 26.02 lakh crore.
She knowledgeable that the fiscal deficit in FY24 is anticipated at 5.8 per cent of GDP, down from 5.9 per cent estimated earlier.
The fiscal deficit touched Rs 9.82 lakh crore or 55 per cent of the annual price range goal at December-end 2023.
In the corresponding interval final 12 months, the deficit was 59.8 per cent of the price range estimates for 2022-23.
Govt Will Raise Rs 14.13 lakh
The authorities will increase Rs 14.13 lakh crore from the market by issuing dated securities in 2024-25.
The authorities resorts to market borrowings to bridge the hole between expenditure and income.
The authorities mobilised a gross quantity of Rs 5.77 lakh crore by issuing dated securities within the present monetary 12 months as much as July 31, 2023.
Sitharaman additionally mentioned 50-12 months curiosity-free loans of Rs 75,000 crore to be prolonged to states to understand the dream of a developed India, and added that each problem of pre-2014 was overcome by way of our financial administration.
Stating that each problem of the pre-2014 period was overcome by way of financial administration and governance, she mentioned the federal government, in its July price range, will current an in depth roadmap to make India a developed nation.
“Guided by the principle ‘reform, perform, and transform’, the Government will take up next-generation reforms, and build consensus with the states and stakeholders for effective implementation,” Sitharaman mentioned in her speech.
