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

KONE Opens India's First Digital Experience Centre in Pune

KONE, a global elevator and escalator manufacturer, has inaugurated its first Digital Experience Centre (DEC) in India, located in Pune. The facility aims to showcase how artificial intelligence (AI), connectivity and data-driven technologies can enhance customer experiences and improve building operations.The centre was inaugurated by Jussi Herlin, Executive Vice Chair, KONE Corporation; Philippe Delorme, President and CEO, KONE; and Nandan Nilekani, Co-founder and Chairman of the Board, Infosys.Designed as an interactive customer environment, the facility demonstrates digital solutions cover..

Next Story
Infrastructure Urban

CII GreenCo Launches Circularity Guidelines for Indian Industry

The Confederation of Indian Industry (CII) GreenCo Council has launched the CII GreenCo Circularity Guidelines – Pilot Version at the 17th CII GreenCo Waste & Resource Management Summit 2026 in Chennai. The initiative aims to strengthen resource efficiency, waste reduction and circular economy practices across Indian manufacturing and process industries.The guidelines introduce a structured framework with circularity indices covering raw materials, consumables, packaging and other resource inputs. These indicators will help industries assess existing practices, identify opportunities to ..

Next Story
Infrastructure Energy

Global Electronics Association Launches IPC-1783-CO2E Standard

The Global Electronics Association has introduced IPC-1783-CO2E, a new international standard aimed at improving consistency, transparency and comparability in product carbon footprint reporting across the electronics manufacturing industry.The standard, titled International Standard for Data Collection and Reporting of CO2 Equivalent (CO2e) Emissions for the Electronics Manufacturing Supply Chain, provides industry-specific guidance for collecting, estimating and reporting carbon emissions data.With increasing regulatory requirements and customer expectations, electronics manufacturers face c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code