Budget: Fiscal deficit target pegged at 5.9 pc of GDP for 2023-24

New Delhi [India], February 1 (ANI): Presenting the Union Budget 2023, Union Finance Minister Nirmala Sitharaman on Wednesday pegged the fiscal deficit target for 2023-24 at 5.9 per cent of gross domestic product (GDP).

The Finance Minister further said that the government intends to bring the fiscal deficit below 4.5 per cent of GDP by the financial year 2025-26. Overall, the government proposed to increase capital expenditure outlay by 33 per cent to Rs 10 lakh crore in 2023-24, which would be 3.3 per cent of the GDP, said Sitharaman.

“(This overall outlay) would be 3.3 per cent of GDP, almost three times the outlay made in 2019-20. With the substantial increase, it is central to the government’s efforts to enhance growth potential and job creation, the crowd in private investments and provides a cushion against global headwinds,” Sitharaman said in her Budget speech.

Sitharaman further told the Parliament that for PM Awaas Yojana, the government proposed to raise allocation by 66 per cent to over Rs 79,000 crore. “Further, the proposed capital outlay of about Rs 2.40 lakh crore is being pegged for railways,” Sitharaman said adding that this budgeted outlay for the railways is the highest ever and nine times of what it was in 2013.

The government proposes to increase the agricultural credit target to Rs 20 lakh crore with a focus on animal husbandry, dairy and fisheries, Sitharaman told Parliament. The agriculture sector of the country has been growing at an average annual growth rate of 4.6 per cent in the last six years.

The government will also launch a sub-scheme of the existing PM Matsya scheme to improve value chain efficiencies, she said. Sitharaman started her Budget speech at 11 am, the last full Budget of the Modi government in its second term. Like the previous two Union Budgets, Union Budget 2023-24 is also presented in paperless form.

This is the fifth budget presentation by Sitharaman. The budget session of the Parliament began on Tuesday with President Droupadi Murmu’s maiden address to the joint sitting of both Houses, subsequently tabling the Economic Survey for 2022-23. The formal exercise to prepare the annual Budget for the next financial year (2023-24) commenced on October 10.

The Economic Survey, tabled in the Parliament on Tuesday, noted India’s GDP is expected to grow in the range of 6 to 6.8 per cent in the coming financial year 2023-24. This is in comparison to the estimated 7 per cent this fiscal and 8.7 per cent in 2021-22.