Budget 2024: Important budgetary figures and their meaning

The government has targeted a fiscal deficit of 5.1 percent of the GDP for 2024-25.

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| February 1, 2024 , 1:14 pm
The government allocated Rs 11.1 lakh crore as capital expenditure for the next fiscal year. (Image via Unsplash)
The government allocated Rs 11.1 lakh crore as capital expenditure for the next fiscal year. (Image via Unsplash)

Within the Union Budget, some figures are more significant than others in understanding the direction the government is steering the economy. Check out the snapshot of the most important budgetary figures, offering a glimpse of India’s fiscal trajectory, as per Moneycontrol.

Fiscal deficit:

The government has targeted a fiscal deficit of 5.1 percent of the GDP for 2024-25.

A Moneycontrol survey of economists expected the government to set a fiscal deficit target at 5.3 percent for the year starting April 1.

The government has assumed a nominal GDP growth of 10.5 percent for 2024-25.

A Moneycontrol poll of economists expected the finance ministry to assume a nominal GDP growth of 10.5 percent in 2024-25 for its Budget calculations.

The nominal GDP growth assumption for 2024-25 is one of the most crucial numbers in the Budget as it determines estimates such as the fiscal deficit and the growth in tax collections.

Disinvestment:
Divestment target for FY25 at Rs 50,000 crore, lowered to Rs 30,000 crore FY24

Gross market borrowing

The Centre will borrow Rs 14.13 lakh crore from the markets in 2024-25 to finance its fiscal deficit.

According to a Moneycontrol survey of economists, the government was expected to peg its gross borrowings at Rs 15.2 lakh crore for the next financial year and net borrowing at Rs 11.5 lakh crore.
The gross borrowing target for next year is lower than this year’s budget estimate of Rs 15.43 lakh crore.

Capex

The government allocated Rs 11.1 lakh crore as capital expenditure for the next fiscal year. This is a rise of 11.1 percent.

The FY25 capex will be 3.4 percent of the GDP. Infra stocks gain as capex outlay increased by 11.1 percent in FY25

That compares with the Rs 10.01 lakh crore budgeted for the current fiscal year, which was 33.5 percent higher than the money budgeted in the year ended March 31, 2023

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