Suspense Crime Sach Ka Dam
The government will continue to focus on improving quality expenditure, strengthening social security mechanisms and bringing down the fiscal deficit to 4.5 percent of GDP in the financial year 2025-26. This information was given in a document of the Finance Ministry. Finance Minister Nirmala Sitharaman will present the budget for the financial year 2025-26 in Parliament on February 1. The central government is committed to follow the smooth path of fiscal consolidation announced in the budget for the financial year 2021-22 and to keep the fiscal deficit below 4.5 percent of GDP by the financial year 2025-26. This information was given by the Finance Ministry on the half-yearly review of the trends of receipts and expenditure and the deviation in meeting the government’s obligations under the Fiscal Responsibility and Budget Management Act 2003. These statements were placed in the Lok Sabha last week.
Emphasis on improving the quality of public expenditure
It said, “Emphasis will be laid on improving the quality of public expenditure. At the same time, social security mechanisms for the poor and needy will be strengthened. This approach will help further strengthen the country’s macro-economic infrastructure and ensure overall financial stability.” According to the statements, Budget 2024-25 will be presented against the backdrop of global uncertainties caused by wars in Europe and West Asia. India’s strong macroeconomic fundamentals have protected the country from the uncertainties affecting the global economy. It said, “This has also helped the country to pursue growth along with fiscal consolidation. As a result, India has been able to maintain its pride as one of the fastest growing economies in the world. However, risks to growth still remain. “
The total expenditure is estimated to be around Rs 48.21 lakh crore
As per the Budget Estimates (BE) for FY 2024-25, total expenditure is estimated at around Rs 48.21 lakh crore, out of which expenditure on revenue account and capital account is estimated at around Rs 37.09 lakh crore and Rs 11.11 lakh crore respectively. As against the total expenditure of Rs 48.21 lakh crore, expenditure in the first half of FY 2024-25 was Rs 21.11 lakh crore or about 43.8 per cent of the budget estimate. Taking into account grants for creation of capital assets, effective capital expenditure (capex) is estimated at Rs 15.02 lakh crore. Gross tax revenue (GTR) is estimated at around Rs 38.40 lakh crore and the implied tax-GDP ratio is 11.8 per cent. Total non-debt receipts of the Centre are estimated at around Rs 32.07 lakh crore. This includes tax revenue (net to Centre) of about Rs 25.83 lakh crore, non-tax revenue of about Rs 5.46 lakh crore and miscellaneous capital receipts of Rs 0.78 lakh crore.
Fiscal deficit
With the above estimates of receipts and expenditure, the fiscal deficit in the budget estimates for 2024-25 is estimated at about Rs 16.13 lakh crore or 4.9 per cent of GDP. The fiscal deficit in the first half of FY 2024-25 is estimated at Rs 4.75 lakh crore or about 29.4 per cent of the budget estimates. The fiscal deficit is planned to be financed by raising Rs 11.13 lakh crore from the market (G-Sec + T-Bills) and the remaining Rs five lakh crore from other sources such as NSSF, State Provident Fund, external borrowing, withdrawal of cash balances, etc.
