The fiscal deficit target of 4.5% or less for India is expected to be reached by 2025–2026, according to Finance Minister Nirmala Sitharaman during her post-budget press conference on Thursday. Previously, FM estimated the budget deficit for FY24 to be 5.8% and for FY25 to be 5.1% in the Interim Budget.
"Every month, you get the reports coming out, so the budget process has become absolutely transparent, we set in the process of keeping everything brought on budget and nothing kept aside or underneath it," she stated.
"Therefore, our fiscal deficit for 2023–2024 is 5.8%, significantly less than the 5.9% projected in the budget. In a similar vein, we allocated a budget deficit of 5.1% for 2024–2025. This demonstrates unequivocally that we are on course to reach the glide path established for 2021–2022 and that we will be able to fulfil the 4.5% or less fiscal deficit by FY26."
During the press briefing, Finance Secretary TV Somanathan stated that India has the lowest net to GDP ratio among the G20 nations. He went on to say that 40%, the amount the NK Singh Committee had projected, was prior to the Covid-19 pandemic and that the current circumstances have to be taken into account for the study at this time.
According to Revenue Secretary Sanjay Malhotra, the Centre will probably have to pay almost Rs 3,500 crore to resolve tax issues. FM Sitharaman suggested in the Interim Budget to remove unresolved, unverified, unreconciled, or contested direct tax demands of up to several decades' worth of money. This move is anticipated to benefit 10 million taxpayers. She suggested that unpaid direct tax claims of up to Rs 25,000 for the years up to FY10 and up to Rs 10,000 for the years FY11 through FY15 be withdrawn.
During the press conference, FM Sitharaman added that the Centre has allocated Rs 10,000 crore for the rooftop solarization project, which will provide free electricity to up to 300 units. She stated in her speech earlier in the day that this would allow up to 300 units of free electricity per month to be distributed to 10 million households.
According to her, homes would be able to save anywhere between Rs. 15,000 and Rs. 18,000 a year by receiving free solar electricity and selling the excess to distribution firms.
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