The budget contains a multitude of numbers, one as important as the next. Here, Moneycontrol tells you which numbers matter the most and what they mean for the economy in 2024-25
A Moneycontrol poll of economists had shown that the finance minister may target a fiscal deficit of 5.3 percent of the GDP for 2024-25 in its interim budget.
A Moneycontrol poll of 15 economists had also shown the finance ministry may assume a nominal GDP growth of 10.5 percent for 2024-25 in its interim budget calculations.
Analysts and economists praise the interim Budget s fiscal projections, highlighting the government s commitment to fiscal consolidation. The projected fiscal deficit numbers for FY24 and FY25 indicate that the target of 4.5% fiscal deficit by FY26 is achievable. The net market borrowing in FY25 will positively impact the bond market and 10-year G-sec yields. The higher than expected capex and lower fiscal deficit suggest healthier expenditure quality.
The government has come up with a new pre-budget presentation that acts as a spreader of pre-poll optimism, but its broad sweep offers only a partial view of the economy at best. The idea’s good, but this is a missed opportunity, unfortunately.