Government focuses on capex to manage fiscal deficit
after close1 source ↓written by the desknot a recommendation
- capital spending
- ₹17.1 lakh crore
- fiscal deficit
- ₹16.96 lakh crore
- deficit estimated
- 0.3% of GDP
- for FY24
- 10.9%
- in FY24
- 40.8%
The government is channeling borrowing primarily into capital expenditure, with effective capital spending at ₹17.1 lakh crore, exceeding the fiscal deficit of ₹16.96 lakh crore. This shift indicates a focus on asset creation, which may enhance economic growth potential.
Key Points:
• Effective revenue deficit estimated at 0.3% of GDP.
• Conservative tax revenue growth projected for FY24 at 10.9%.
• Non-tax revenue expected to rise significantly in FY24 by 40.8%.
Not investment advice. For informational purposes only.