Budget 2024: India's fiscal deficit to be budgeted at 5.3 pc of GDP in FY25: BofA Securities
fiscal deficit to 5.3 per cent of India's gross domestic product in the upcoming budget for FY25 despite poll pressure, a foreign brokerage said on Friday. The government will meet the FY24 commitment to reduce the important number to 5.9 per cent, BofA Securities said in a note.
«We see Centre's fiscal deficit to consolidate further to 5.3 per cent of GDP, despite poll pressure,» its analysts wrote in a note.
The government will opt for continuing with its strategy of consolidating fiscal deficit through capital expenditure driven growth instead of expenditure compression, it said.
The brokerage said digitization-led formalization has aided the fiscal math through tax buoyancy on one side and reducing wasteful expenditure (subsidy leakage) on the other.
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The government had earlier committed to reduce the fiscal deficit to 4.5 per cent by FY26 as part of its glide path to gradually reduce the gap, which is seen as a major factor influencing macroeconomic position.
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The brokerage estimated a 10.5 per cent growth in the revenue receipts at Rs 30.4 lakh crore, which will be led by a 10 per cent increase in tax revenue and 14 per cent jump in non-tax
