The Center is positive about meeting the fiscal deficit objective and continuing to push capital expenditures, and it is still confident in reaching the updated goals for the current fiscal year that were outlined in the Interim Budget 2023–24.
An official source declared that the fiscal deficit target of 5.8% of the GDP for FY24 will be met.
The FY24 budget deficit objective was reduced from the budget projection of 5.9% in the Interim Budget 2024–25, which was unveiled on February 1.
In the meanwhile, capital spending is expected to be on track, with the Revised Estimates for FY24 putting it at Rs 9.5 lakh crore compared to the Budget Estimate of Rs 10 lakh crore.By early February of this year, estimates indicate that around 80% of the capital expenditure objective had been used.
The source stated that it is anticipated that ministries would be able to use the entire amount given the trend. According to the source, revenue expenditure has been significantly lower at around 79% of the RE of Rs 35.4 lakh crore by early February 2024, indicating that capex has actually been slightly ahead of revenue expenditure. The Center's capital expenditures between April and December 2023 were Rs 6.73 lakh crore, while revenue expenditures were Rs 23.8 lakh crore.
Budget 2024–2025: Government Probably Plans To Aim For A 5.3% Fiscal Deficit in FY25 | Monitoring The Major Budget Nos. On February 29, official statistics on Central government finances through January 31, 2024, will be made available.
In order to accelerate economic development following the Covid-19 outbreak, which has caused a halt in private capital spending, the Center has been relying on government ministries and agencies to continue their capital investment. However, because the model code of conduct will go into force sometime in March, there have been worries that government capital expenditure would slow down ahead of the general elections.
