Budget 2024 expectations: Nirmal Bang highlights 6 major themes that could dominate the Interim Budget 2024

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Budget 2024: What is Vote on Account? Significance and more… Nirmal Bang expects fiscal consolidation in FY25 with a deficit likely at about 5.5 per cent of GDP, largely driven by moderation in government capex growth at 15 per cent. The brokerage firm highlighted the following six major themes that could dominate the Interim Budget 2024. Take a look: Nirmal Bang expects the fiscal deficit to come in at 5.5 per cent of GDP in FY25, led by moderation in capex growth to 15 per cent from an estimated 36 per cent in FY24.

Also Read: Budget 2024 to focus on fiscal consolidation, capital expenditure: Barclays Revenue expenditure growth is expected to be modest at 2.5 per cent in FY25, according to Nirmal Bang. The brokerage firm expects subsidies to be largely flat in FY25 compared to FY24. Also Read: Budget may cite ‘Vision 2047’ to seek long-term allocations The brokerage firm pointed out that despite moderation in government capex growth, it will continue to be dominated by roads and railways.

"Railways may see the highest increase in allocation, with spending up by nearly 40 per cent year-on-year (YoY) in FY24 year-to-date. The railways are leading from the front in central government and CPSE project announcements in FY24," said Nirmal Bang. Also Read: Vande Bharat to bullet train, Railways to ride a ₹3 tn budge Nirmal Bang underscored that the spending by the Ministry of Rural Development is down by 8 per cent YoY in FY24 year-to-date while spending by the Ministry of Agriculture is flat.