Upcoming budget to continue on the fiscal journey set by interim budget
₹11.11 trillion. This may be increased slightly given the increased focus by the infrastructure-related ministries, the person added. "If the intention was to go with different numbers, more liberal numbers would have been presented in the interim budget," added the second person.
A finance ministry spokesperson and the Union finance secretary didn't respond to emailed queries. The government had proposed fiscal deficit targets of 5.1% for FY25 and 4.5% or less by FY26. "The 5.1% fiscal deficit target for FY25 may be bettered slightly on the back of higher-than-expected revenue growth and in the absence of any shock developments resulting in higher expenditure," the first person said.
On 23 May, Mint reported that a chunk of the dividend bonanza from the Reserve Bank of India (RBI) may be utilized to improve the fiscal deficit target for FY25 from 5.14% of gross domestic product (GDP) to 4.9-5%. The RBI dividend for FY24 was ₹2.11 trillion, up 141% from the previous year. Experts said additional revenues may be utilized to bump up public and private consumption.
"The budget should continue to focus on supporting growth through infrastructure expansion, but provide effective incentives for the rural economy. These may include additional provisions for MGNREGA, PM Awas Yojana, and higher transfers under Kisan Samman Nidhi," said D.K. Srivastava, chief policy advisor, EY India.
"As compared to the interim budget, it is expected that the government will have access to additional revenues to the tune of nearly ₹1.5 trillion from tax and non-tax revenues. This may increase revenue expenditure growth over and above what was provided in the interim budget, while maintaining capex growth, or increasing it marginally. Some
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