2024 Interim Budget: Finance Minister Nirmala Sitharaman, while presenting the interim budget, said the government will continue on the path of fiscal consolidation to reduce the fiscal deficit to 4.5 per cent in 2025-26.
Also Read: Budget 2024 Live Updates
Sitharaman raised capital expenditure by 11% for the next fiscal year to maintain economic growth while cutting the deficit in the reform-oriented interim budget, slashing the fiscal deficit this fiscal year from 5.9% of GDP as budgeted to 5.8% and further fell to 5.1% in the next financial year.
“As I announced in my 2021-22 budget speech, we will continue on the path of fiscal consolidation and bring the fiscal deficit below 4.5 per cent by 2025-26,” Sitharaman said.
Revenue for the current fiscal year is expected to touch Rs 3,003 crore, higher than the budget estimate, reflecting strong growth momentum and formalization in the economy.
Increased capital spending
Sitharaman announced that the country’s capital expenditure in 2024-25 has been increased by 11% to Rs 1,111 crore, accounting for 3.4% of GDP.
Capital spending has tripled in the past four years, creating a multiplier effect on economic growth and job creation, she said.
fiscal deficit
FM Nirmala Sitharaman said the fiscal deficit in 2024-25 is expected to be 5.1 per cent of GDP as against 5.8 per cent in the current fiscal.
Sitharaman said the tax revenue for 2024-25 is expected to be Rs 2,602 crore.
She said the fiscal deficit in fiscal 2024 is expected to be 5.8% of GDP, down from the previous estimate of 5.9%.
As of the end of December 2023, the fiscal deficit reached Rs 982 crore, or 55% of the annual budget target.
At the same time last year, the deficit accounted for 59.8% of the 2022-23 budget estimate.
Sitharaman also said that Rs 75,000 crore of 50-year interest-free loans will be provided to states to realize the dream of a developed India, adding that through our economic management, we have overcome every challenge before 2014 .
She said every challenge before 2014 had been overcome through economic management and governance and the government would come up with a detailed roadmap in the budget in July to make India a developed country.
“The government will undertake the next generation of reforms guided by the principle of ‘reform, execute and transform’ and build consensus with states and stakeholders for effective implementation,” Sitharaman said in her speech.
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