Budget 2024: Fiscal deficit in the interim budget is expected to be 5.3 percent, disinvestment is expected to be less than Rs 50,000.
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budget 2024: Rating agency ICRA has estimated the fiscal deficit at 5.3 percent and the disinvestment target at less than Rs 50,000 crore in the interim budget for the financial year 2024-25. Fiscal deficit refers to the government’s borrowing to bridge the gap between total revenue and expenditure. It is estimated to be at six percent of GDP (Gross Domestic Product) in the current financial year which was presented on February 1 last year. Budget Slightly higher than the estimate of 5.9 percent. However, direct tax and central GST collections are expected to exceed the budget estimate for 2023-24 by Rs 1 lakh crore and Rs 10,000 crore, respectively, ICRA said in its report on expectations for the interim budget of 2024-25.
Interim budget will come on February 1
Finance Minister Nirmala Sitharaman will present the interim budget in Parliament on February 1. According to ICRA, the Centre’s capital expenditure budget estimate may be Rs 75,000 crore less than Rs 10 lakh crore. However, despite this it will be 26 percent more on annual basis. However, this growth rate is less than the estimate of 35.9 percent expressed in the budget for the last financial year.
GDP may be higher
Capital expenditure stood at Rs 73,200 crore per month. This is less than the average monthly expenditure of Rs 83,400 crore against the budgetary target of Rs 10 lakh crore. Regarding the disinvestment target, ICRA said that in view of the ongoing uncertainties in terms of deals in the market, a target of less than Rs 50,000 crore seems appropriate for the financial year 2024-25. The rating agency said that considering the delay in disinvestment of some big companies, a disinvestment target of less than Rs 50,000 crore seems appropriate.
Ten thousand crores received in disinvestment
The government has so far raised Rs 10,000 crore from disinvestment in the current financial year. This is much less than the target of Rs 51,000 crore set for the entire financial year. The report said that the fiscal deficit in absolute terms in 2023-24 will probably not exceed the budgetary target of Rs 17.9 lakh crore. But as a percentage of GDP it may be slightly higher, six percent. The reason for this is GDP at market price which is likely to be lower than the budget estimate. According to ICRA, the fiscal deficit in the next financial year is estimated to be 5.3 percent. Whereas the target of fiscal deficit in 2025-26 can be kept at 4.5 percent.
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