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Developed India’s plan will be visible in the budget, predicts a global firm

Sagar Patel

By Sagar Patel

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The eyes of India’s upcoming budget are not just on the opposition or the people of India. Foreign global brokerage firms are also keeping an eye on this. Global brokerage firm Morgan Stanley predicted in a report on Wednesday that Finance Minister Nirmala Sitharaman may present a plan for a developed India by 2047 and a medium-term plan for fiscal strength in the budget presented this month.

The report says that with a fiscally prudent approach, we estimate that the emphasis will continue to be on capital expenditure as compared to revenue expenditure. Also, the focus will be on the targeted social sector by improving access to physical, social and digital infrastructure. Sitharaman will present the full budget for the financial year 2024-25 on July 23.

I also guessed

The brokerage firm has estimated that the fiscal deficit target for the current fiscal year will remain at 5.1 per cent of GDP. This is in line with the target set in the interim budget. Further, the government will maintain the target of taking it to 4.5 per cent for the next financial year. The fiscal deficit in the financial year 2023-24 was 5.6 per cent of GDP. According to the report, the scope on the fiscal front has improved with higher-than-expected dividends from the Reserve Bank of India (RBI). This will help maintain the pace of capital expenditure and increase spending on targeted welfare measures.

The government can do this too.

The brokerage said that with this, considering the possibility of improved tax and non-tax revenues, the fiscal deficit target may be slightly lower i.e. less than 5.1 per cent. According to the report, the Budget is also expected to have a special focus on the roadmap for a developed India by 2047. Besides, the Budget is also expected to contain a medium-term plan for fiscal consolidation beyond 2025-26.

Sagar Patel

Sagar Patel

I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,

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