New Delhi, Feb 1: Continuing the path of fiscal consolidation, the government intends to bring the fiscal deficit below 4.5 per cent of GDP by 2025-26.
This was stated by Union Finance Minister Nirmala Sitharaman while presenting the Union Budget 2023-24 in the Parliament today.
The Finance Minister further stated that the fiscal deficit is estimated to be 5.9 per cent of GDP in BE 2023-24. To finance the fiscal deficit in 2023-24, the net market borrowings from dated securities are estimated at Rs. 11.8 lakh crore.
The balance financing is expected to come from small savings and other sources. The gross market borrowings are estimated at Rs. 15.4 lakh crore.
In Budget Estimates 2023-24, the Finance Minister stated that the total receipts other than borrowings and the total expenditure are estimated at Rs. 27.2 lakh crore and Rs. 45 lakh crore respectively. Moreover, the net tax receipts are estimated at Rs. 23.3 lakh crore.
In the Revised Estimate 2023-24, the Finance Minister stated that the total receipts other than borrowings is Rs. 24.3 lakh crore, of which the net tax receipts are Rs. 20.9 lakh crore. The Revised Estimate of the total expenditure is Rs. 41.9 lakh crore, of which the capital expenditure is about Rs. 7.3 lakh crore. The Revised Estimate of the fiscal deficit is 6.4 per cent of GDP in RE 2022-23, adhering to the Budget Estimate.
The Finance Minister stated that the revenue deficit is expected to be at 2.9 % in FY 2023-24 over 4.1% in 2022-23. Back-to-back global headwinds and global economic uncertainties continue to pose constraints which are often beyond the direct control of domestic economic policy levers.
Although, new development and welfare-related expenditure commitments, buoyancy in tax receipts and targeted expenditure rationalization during the year, have helped to continue with the thrust on rapid inclusive development.
The fiscal policy statement noted that in FY 2022-23, due to the sudden outbreak of geopolitical conflict that jeopardized food and energy security, there was a higher food and fertiliser subsidy requirement for supporting the vulnerable and ensuring macroeconomic stability.
Sitharaman reiterated government’s commitment to pursue a broad path of fiscal consolidation to attain a level of Fiscal Deficit lower than 4.5 per cent of GDP by FY 2025-26. The Government would continue with its efforts to attain sustained, broad based economic growth, and take such measures as may be necessary to protect the lives/ livelihoods of the people, while adhering to the path of fiscal rectitude.