Minister of State for Finance Bhagwat Karad on December 18, remarked that the Central Government is likely to attain its fiscal deficit target of 5.9 per cent of Gross Domestic Product (GDP) in the fiscal year 2023-24.
As per the data released by the government last month, the fiscal deficit in the first seven months of the current fiscal year ending on March 31, 2024, stands at ₹8.04 lakh crore ($96.86 billion) or 45% of the estimate for the whole year.
The government has made a total collection of ₹10,050 crore from selling stakes in government-run firms as of December 13, against its full-year target of ₹51,000 crore, Karad informed in Parliament.
“It is difficult to anticipate the quantum of actual proceeds from divestment during the current financial year 2023-24″ as stake sales depend on factors including market conditions and investor appetite, said Karad.
For the full fiscal year 2023-24, the government has estimated the fiscal deficit to be ₹17.86 lakh crore or 5.9% of the GDP.
On December 12, Union Finance Minister Nirmala Sitahraman said in the Lok Sabha that the economy is moving in the right direction and Bharat has become the fastest-growing major economy in the world. Further, Sitharaman added that fiscal prudence is the top priority of the government without compromising on social welfare.
“Our economy is moving in the right direction… Macroeconomic fundamentals are fine. We have become the fastest-growing economy. Q2 growth of 7.6 per cent is the highest in the world,” she had said.
On December 12, the Lok Sabha had cleared a net additional spending of ₹58,378 crore in the current fiscal ending March 2024, with a large chunk going towards the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme and subsidy on fertiliser.
The gross additional spending sought by the government was over ₹1.29 lakh crore, of which ₹70,968 crore would be matched by savings and receipts.
NE Watch Desk
