
Govt unlikely to achieve 4.5% fiscal deficit target by FY26: Moody's
Budget 2023 is credit positive for renewable energy companies, cement and steel producers, oil marketing companies and automakers, says Moody's.
Budget 2023 is credit positive for renewable energy companies, cement and steel producers, oil marketing companies and automakers, says Moody's.
SBI Chairman Dinesh Khara says all other fiscal parameters show encouraging trends, ensuring fiscal policy has enough headroom to accommodate any future shock if warranted.
The fiscal deficit for 2023-24 is estimated at 5.9% of the GDP, says Finance Minister Nirmala Sitharaman.
The Economic Survey says the government's prudent and calibrated fiscal response enabled stable public finances even amidst the present uncertainties.
It reduced to 6.72% in FY22 due to economic recovery after the lockdown, but still remained higher than anything in the past decade.
EY India has said FY24 could be a challenging year for the government with the likely fall in the nominal GDP, which will restrain the fiscal elbow room for the government.
The net market borrowing of the Centre in FY24 will be around ₹11.7 lakh crore; a lower deflator could make things difficult, says SBI Research.
The higher-than-budgeted nominal GDP would help in meeting the target for revenue and fiscal deficit at 3.8% and 6.4% of GDP, says India Ratings and Research.
Unless government improves its tax revenue performance, and meets its disinvestment targets, there will be a shortfall.
Govt recently told Parliament the fiscal deficit in H1 FY23 remained significantly lower than the moving average of the last five years on the back of tax buoyancy.