Budget 2024: Finance Minister Nirmala Sitharaman may present a blueprint for ‘developed India’ by 2047 and a medium-term plan for fiscal strength in the budget to be presented this month. Global brokerage company Morgan Stanley has made this estimate in a report on Wednesday. The report said, “With a fiscally prudent stance, we anticipate that the emphasis will remain on capital expenditure as compared to revenue expenditure. Along with this, attention will be given to the targeted social sector along with improving access to physical, social and digital infrastructure. ”
Fiscal deficit target will remain at 5.1 percent
Sitharaman will present the full budget for the financial year 2024-25 on July 23. The brokerage company has estimated that the fiscal deficit target for the current financial year will remain at 5.1 percent of GDP (gross domestic product). This is in line with the target set in the interim budget. Also, the government will stick to the target of bringing it to 4.5 percent by the next financial year. The fiscal deficit in the financial year 2023-24 was 5.6 percent of GDP.
Scope better on the fiscal front
According to the report, “With the receipt of more than expected dividend from the Reserve Bank of India (RBI), the scope on the fiscal front has improved. This will help in maintaining the pace of capital expenditure and increasing spending on targeted welfare measures.” The brokerage company said that with this, the fiscal deficit target may be slightly less i.e. less than 5.1 percent, given the possibility of better tax and non-tax revenue. According to the report, it is also expected that the budget will have a special focus on the framework for ‘Developed India’ by 2047. Besides, the Budget is also expected to have a medium-term plan for fiscal consolidation beyond 2025-26.
