Nirmala Sitharaman advances Viksit Bharat via infrastructure
ECONOMY & POLICY

Nirmala Sitharaman advances Viksit Bharat via infrastructure

Last year, when the Budget was presented by the finance minister, the deficit projections for 2023-24 were based on the assumption that the nominal GDP would be nearly Rs 302 trillion.

According to current estimates, that number is now under Rs 297 trillion. If the absolute deficit numbers had remained at Budget estimates (BE), they would have represented a larger proportion of GDP due to the reduction in the denominator. However, the revised estimates (RE) indicate that the fiscal deficit is 5.8% of GDP, slightly lower than the budgeted 5.9%.

The question arises: was this achievement the result of higher receipts? Not exactly. In fact, total receipts in the revised estimates are slightly lower than in the Budget estimates (Rs 44.9 trillion against Rs 45 trillion). What has contributed to keeping the deficit in check is a reduction in "effective capital expenditure" by about Rs trillion, with the RE of Rs 12.7 trillion falling approximately 7% short of the budgeted figure. Effective capital expenditure encompasses both the Centre's own capital spending and the grants-in-aid provided for the capital expenditure of states.

Despite a somewhat higher than budgeted revenue expenditure (Rs 35.4 trillion against Rs 35 trillion), the total expenditure was kept within the budgeted figure. Consequently, the fiscal deficit, which is the gap between total expenditure and receipts other than borrowings, is now estimated to reach Rs 17.3 trillion instead of the initially budgeted Rs 17.9 trillion. This ensures that it remains within the budget target of 5.9% of GDP.

Last year, when the Budget was presented by the finance minister, the deficit projections for 2023-24 were based on the assumption that the nominal GDP would be nearly Rs 302 trillion. According to current estimates, that number is now under Rs 297 trillion. If the absolute deficit numbers had remained at Budget estimates (BE), they would have represented a larger proportion of GDP due to the reduction in the denominator. However, the revised estimates (RE) indicate that the fiscal deficit is 5.8% of GDP, slightly lower than the budgeted 5.9%. The question arises: was this achievement the result of higher receipts? Not exactly. In fact, total receipts in the revised estimates are slightly lower than in the Budget estimates (Rs 44.9 trillion against Rs 45 trillion). What has contributed to keeping the deficit in check is a reduction in effective capital expenditure by about Rs trillion, with the RE of Rs 12.7 trillion falling approximately 7% short of the budgeted figure. Effective capital expenditure encompasses both the Centre's own capital spending and the grants-in-aid provided for the capital expenditure of states. Despite a somewhat higher than budgeted revenue expenditure (Rs 35.4 trillion against Rs 35 trillion), the total expenditure was kept within the budgeted figure. Consequently, the fiscal deficit, which is the gap between total expenditure and receipts other than borrowings, is now estimated to reach Rs 17.3 trillion instead of the initially budgeted Rs 17.9 trillion. This ensures that it remains within the budget target of 5.9% of GDP.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

PMC Approves Rs 5.78 bn Waste Processing Contract

The Pune Municipal Corporation approved a Rs 5.7796 billion (bn) fifteen-year contract to process 500 metric tonnes (t) of waste daily at the Devachi Uruli depot and allowed unauthorised overhead cables to remain temporarily for one year subject to a fee. The decision was taken by the civic body to appoint a private operator for an integrated waste facility covering about 12 acres. The approval frames the contract as an operational arrangement with a fixed base rate and annual adjustments. The contract was awarded to Bhoomi Green Energy Envirocare LLP, which quoted Rs 772 per t, compared with ..

Next Story
Infrastructure Urban

Kerala High Court to Inspect Brahmapuram Waste Plant

Two judges of the Kerala High Court, Justice Bechu Kurian Thomas and Justice Gopinath P, will inspect the Brahmapuram waste management plant on 11 September as part of the suo motu proceeding on the plant's maintenance. The inspection was scheduled to allow the bench to assess conditions on site and to verify representations made by municipal and state authorities. The court listed the site visit during a hearing and directed officials to prepare for an on-site review. The bench instructed authorities to file a detailed report on the plant's present functioning ahead of the visit. It said the ..

Next Story
Infrastructure Transport

Ahmedabad Geetamandir Bus Port Terminal Two Ready with Airport Facilities

Ahmedabad’s Geetamandir Bus Port has completed a separate Terminal Two, which is ready to serve passengers travelling to Saurashtra-Kutch and North Gujarat. The facility has been developed with airport like facilities to improve passenger comfort and ease of travel. Deputy Chief Minister Harsh Sanghvi is scheduled to inaugurate the new terminal today. Authorities say the design focuses on smoother boarding and reduced congestion. Terminal Two will become operational from 13 August and is expected to handle 1,091 buses daily servicing routes to Saurashtra-Kutch and North Gujarat. The new arra..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement