What are the key areas the government will focus on in Budget 2024? Sajjid Chinoy answers

economictimes.indiatimes.com:

«Gross taxes last year were much more stronger than was envisaged in the interim budget. They actually grew at a very healthy pace of 13.5%. So, even if you make conservative assumptions for this year, the government is likely to have more tax revenues than was envisaged back in February and then of course the RBI dividend that the government got was more than double of what had been budgeted back then,» says Sajjid Chinoy, India Chief Economist, JPMorgan.

I understand that you have been part of certain meetings also with the finance minister, etc, and the ministry. Talk to me about what are the big focus areas and what they are talking or concerned about right now.
Sajjid Chinoy: I think there are two issues to look for in next week's budget. The first is to look closer at the fiscal math and here the government enters next week's budget with significantly increased degrees of fiscal freedom. And what do I mean by that? If you look at compare next week's budget with one in February, I think the government over kind of delivered on fiscal consolidation last year, the budget deficit for last year was 5.8%, the actual number was 5.6 and the target for this year was set at 5.1.

So, there is less distance to cover this year, half a percent of GDP. I think more importantly, there are more revenues that the government is working with.

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