New Delhi: The Centre will aim to keep its fiscal deficit for FY26 below 4.5% of the GDP, in line with its performance over the past two fiscals, where it bettered projections, finance secretary T.V. Somanathan said. “The objective for the next year (FY26) remains to have the fiscal deficit below 4.5%,” Somanathan told Mint … Read more
This article focuses specifically on the Budget and what signals it could send. First, I suggest some standard macroeconomic tests which the budget must pass. I then turn to some areas where a new approach is needed and which are more controversial. Basic macroeconomics Viksit Bharat, understood as reaching developed country status, requires 8%-plus growth … Read more
Even though collation politics may make it challenging to pass legislation on the more ambitious parts of the government reform agenda in areas like agriculture, land, labour, and judicial, experts believe that no substantial policy changes could be proposed during the Budget. “We strongly believe (and hope) that there will not be substantial changes in … Read more
New Delhi: The central government plans to borrow a gross ₹14.13 trillion from the bond markets in 2024-25 to finance its fiscal deficit, according to the interim budget for FY25 presented in parliament on Thursday. The government, which reiterated its commitment to a continued fiscal consolidation, has set a fiscal deficit target of 5.1% of … Read more
GDP growth Intent: The budget document is vital to understand GDP growth expected for the next year. The budget is presented two months prior to the start of the next financial year (2024-25) and within a month of the first estimate for the current year (2023-24). Higher growth estimates can mask higher deficit numbers, which … Read more