close

Modi govt has mostly failed in meeting fiscal targets set in Budgets

It seems the glide path given in budgets has been the govt's intention, but the actual conditions turned out to be quite different

Indivjal Dhasmana New Delhi
PM Narendra Modi in Lok Sabha
Premium

PM Narendra Modi | PTI

The Modi government has never been able to meet the fiscal deficit targets it sets for the next two years in the nine budgets, except for 2016-17, given in the Budget for 2015-16. Even in this case, the original target given in the Budget for 2014-15 was three per cent of the gross domestic product (GDP), which was widened to 3.5 per cent in the next Budget and realised.
It is widely expected that the Budget to be presented on February 1 would more or less meet the fiscal deficit target of 6.4 per cent of GDP for FY23 due to higher tax collections and nominal GDP than expected. However, the suggestion to keep the deficit below 4.5 per cent of GDP by 2024-25 may be revised. The Budget refrained from giving specific numbers for the next two years, as has been the practice till 2020-21. However, it says that the Centre will try to keep the fiscal deficit below 4.5 per cent of GDP by 2024-25. Earlier, the fiscal consolidation paper used to give such a specific targ
Or

Also Read

Union Budget 2023: Experts don't expect surprises in social sector outlay

Budget 2023: A look back at some major announcements in previous Budget

Treasury losses, low provision: What to expect from Bank of Baroda's Q1 nos

Bank of Baroda Q2 results preview: Here's what key brokerages expect

GDP growth may have beaten MPC's estimate of 6.3% in Q2: Economists

Budget 2022-23 wishlist: Here're the key challenges in manufacturing sector

Investors budget for growth as markets feed on February 1 hopes

Will education outlay improve amidst widening learning gap? Sector hopes so

Realistic approach: Budget 2023 likely to steer clear of populist measures

Budget 2022-23 wishlist: Here are the key challenges in technology sector

First Published: Jan 24 2023 | 9:45 AM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers. Already a BS Premium subscriber?LOGIN NOW

Register to read more on Business-Standard.com