Government It will continue to focus on improving quality expenditure, strengthening the social safety net and bringing down the fiscal deficit to 4.5 per cent of GDP in FY 2025-26. This information was given in a document of the Finance Ministry. Finance Minister Nirmala Sitharaman will present the budget for the financial year 2025-26 in Parliament on February 1. The Central Government is committed to following the smooth path of fiscal consolidation announced in the Budget for FY 2021-22 and keeping the fiscal deficit below 4.5 per cent of GDP by FY 2025-26. This information was given by the Finance Ministry on the half-yearly review of the trends of receipts and expenditure and deviations in fulfilling the obligations of the government under the Fiscal Responsibility and Budget Management Act 2003. These statements were placed in the Lok Sabha last week.
Emphasis on improving the quality of public expenditure
It said, “Emphasis will be laid on improving the quality of public expenditure.” Besides, the social security system for the poor and needy will be strengthened. This approach will help further strengthen the country’s macro-economic infrastructure and ensure overall financial stability.” According to the statements, Budget 2024-25 will be presented in the backdrop of global uncertainties arising due to wars in Europe and West Asia. India’s strong macroeconomic fundamentals have insulated the country from uncertainties affecting the global economy. “It has also helped the country drive growth with fiscal consolidation,” it said. As a result, India has been able to retain its pride as one of the fastest growing economies in the world. “However, risks to growth still remain.”
The total expenditure is estimated to be around Rs 48.21 lakh crore.
As per the Budget Estimates (BE) for the financial year 2024-25, the total expenditure is estimated to be around Rs 48.21 lakh crore, out of which the expenditure on revenue account and capital account is estimated to be around Rs 37.09 lakh crore and Rs 11.11 lakh crore respectively. Expenditure in the first half of FY 2024-25 was Rs 21.11 lakh crore, or about 43.8 per cent of the budget estimate, against total expenditure of Rs 48.21 lakh crore. Taking into account grants for creation of capital assets, effective capital expenditure (capex) was estimated at Rs 15.02 lakh crore. Gross Tax Revenue (GTR) is estimated at around Rs 38.40 lakh crore and the implicit tax-GDP ratio is 11.8 per cent. The Centre’s total non-debt receipts were estimated at around Rs 32.07 lakh crore. This includes tax revenue (net to the Centre) of about Rs 25.83 lakh crore, non-tax revenue of about Rs 5.46 lakh crore and miscellaneous capital receipts of Rs 0.78 lakh crore.
Fiscal deficit
With the above estimates of receipts and expenditure, the fiscal deficit for 2024-25 is estimated at about Rs 16.13 lakh crore or 4.9 per cent of GDP. The fiscal deficit in the first half of fiscal year 2024-25 is estimated at Rs 4.75 lakh crore, or about 29.4 percent of the budget estimate. The fiscal deficit was planned to be financed by raising Rs 11.13 lakh crore from the market (G-Sec + T-Bills) and the remaining Rs 5 lakh crore from other sources such as NSSF, State Provident Fund, external debt, withdrawal of cash balances etc. There is a plan to collect.
(With inputs from PTI/Language)
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