The central government is unlikely bring any amendments to the Fiscal Responsibility and Budget Management Act for the third year in a row as it expects that the impact of the global slowdown on the Indian economy in 2023 may impact expenditure commitments in financial year 2023-24 (FY24), Business Standard has learnt.
However, the Finance Ministry is likely to stick to its internal fiscal consolidation roadmap and the 2023 Union Budget may target a fiscal deficit of between 5.5-6 percent of nominal GDP in FY24. The roadmap aims for a fiscal deficit target of 4.5 percent of GDP by 2025-26.
The FRBM Act, enacted in 2003, was brought in to enable the central and state governments to make financially sustainable budgets and to prevent them from racking up unsustainable debt burden. It was enacted with a view to provide a legislative framework for reduction of deficit and debt to a sustainable level so as to ensure inter-generational equity in fisc
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