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Good news for the economy ahead of Budget 2024, the government will also breathe a sigh of relief

Sagar Patel

By Sagar Patel

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From the budget, the government has received good news about the country’s economy.

Ahead of Budget 2024, good news is continuously emerging about the country’s economy. Where foreign rating agencies are increasing estimates of the country’s GDP. On the other hand, some agencies have also increased the rating. Another good news came out on Friday. So the country’s coalition government can also breathe a sigh of relief. In fact, in the first two months of the financial year, the country’s fiscal deficit has been deemed to be only 3 per cent of the estimated total, which is a welcome news.

Since the Model Code of Conduct was in force during the Lok Sabha elections, government expenditure has been quite low. Due to which there has been a significant reduction in the fiscal deficit. The fiscal deficit, the difference between the government’s expenditure and revenue, was 11.8 per cent of the budget estimates for 2023-24 in the first two months of the last financial year. For the current financial year (2024-25), the government estimates the fiscal deficit to be Rs 16,85,494 crore, i.e. 5.1 per cent of the gross domestic product (GDP).

this was the only loss

According to data released by the Controller General of Accounts (CGA), the central government’s fiscal deficit in the April-May period of 2024 was Rs 50,615 crore, i.e. 3 per cent of the total budget estimate for the financial year 2024-25. In the same period last year, it was 11.8 per cent of the budget estimate. Net tax revenue during the period under review was Rs 3.19 lakh crore, i.e. 12.3 per cent of the budget estimate for the financial year 2024-25. It was 11.9 per cent in the same period of fiscal year 2023-24.

What were the loss figures like last year?

The total government expenditure as at the end of May 2024 was Rs 6.23 lakh crore, or 13.1 per cent of the budget estimate for the current financial year. In the same period last year it represented 13.9 percent of BE. The reason for low public spending is that the government avoids spending on new projects when the code of conduct is in force during elections. The central government’s fiscal deficit in the financial year 2023-24 was 5.6 per cent of GDP. Under the Fiscal Responsibility and Budget Management (FRBM) Act, the government plans to limit the fiscal deficit to 4.5 per cent in 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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