The fiscal deficit for the fiscal year ending March 31, 2023
was at 6.4%, according to the revised estimates. A Reuters poll
had said budget gap was expected at 6% of GDP. The government's budget gap, which hit a high of 9.5% of GDP
in 2020/21 as the spread of COVID-19 infections brought the
economy to a halt, has narrowed since but remains well above the
medium-term goal of 4.5% of GDP by 2025/26.
Gross market borrowing is estimated at 15.43 trillion rupees
($189 billion), Sitharaman said, while net borrowing was seen at
11.81 trillion rupees. The net borrowing excludes 781 billion
rupees of bonds given to states on account of compensation for a
shortfall in goods and services tax, reducing the repayments due
next year.
New Delhi also aims to switch bonds worth 1 trillion
rupees next year, after switching bonds worth 1.03 trillion
rupees this year.
For the year, the government is targeting an 11.4% growth in net tax revenue to 23.3 trillion rupees. Expenditure is seen rising 7.4% over a year ago to 45 trillion rupees, with longer term capital spending budgeted to rise 33% to 10 trillion rupees. ($1 = 81.8100 Indian rupees) <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ India's fiscal deficit India's gross market borrowings India's gross market borrowings ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Ira Dugal; Editing by Saumyadeb Chakrabarty and Nivedita Bhattacharjee)
