Modest expenditure hike likely in Interim Budget 2024 as Centre looks to stay on fiscal glide path
interim budget for FY25, from the budget estimate for this year, as it aims to balance the need for sustained growth with fiscal consolidation imperatives, people aware of deliberations said.
With the economy continuing to grow at a robust pace, the government is of the view that fiscal consolidation needs greater attention, they said. According to the first advance estimate, India's gross domestic product (GDP) is forecast to grow 7.3% in FY24, bettering the preceding fiscal year's 7.2%. FY24's budget had raised spending by 14.1% over the FY23 budget estimate — to ₹45 lakh crore. FY24 expenditure growth was up 7.5% over the provisional number for the last fiscal year.
The Centre will continue quality spending next fiscal by raising capital expenditure, albeit at a slower pace than in recent years, a government official told ET.
Muted hike in capex
This, while lifting revenue spending at a moderate rate, the official said.
Modest hike likely in Interim Budget 2024 as Centre looks to stay on fiscal glide path
15 income tax, personal finance ideas for FM
What electric two-wheeler makers need from Budget
View: Ahead of Budget, here's what India Inc wants on Customs front
Finance minister Nirmala Sitharaman will present an interim budget for FY25 on February 1, leaving the full budget to the next government after the election in April-May.
The Centre has set a fiscal deficit target of 4.5% of GDP by FY26, against the FY24 goal of 5.9%. It is expected to meet the target this year, which means a reduction of 14 percentage points would be needed in the next two years.
It may target a fiscal deficit of 5.2-5.4% of GDP for the next fiscal year.
The hike in capital expenditure is expected to exceed
