Budget 2024: Fiscal Deficit Target Fruit Of Prudence, Tax Revenue To Be Buoyant, Say Officials

The fiscal deficit target of 5.1% for the next financial year is realistic and a fruit of fiscal prudence, while the growth tax revenue is expected to be buoyant, top officials said on Thursday.

Gross borrowings are pegged at Rs 14.13 lakh crore, Finance Minister Nirmala Sitharaman announced in her interim budget 2024 speech on Thursday.

The government has assumed a 10.5% nominal gross domestic product for fiscal 2025, which underlines economic momentum, Chief Economic Adviser V Anantha Nageswaran told NDTV Profit.

"Private investment pick-up is playing out already. Corporate balance sheets have been improving in the last three years. Listed companies have increased their capex," Nageswaran said.

Revenue Secretary Sanjay Malhotra said that improving on the revised estimate for the current fiscal, the government projected the revenue to grow at the rate of GDP. "With the GDP growth improving, we expect FY24 to see a revenue growth of 12.5%."

"In FY25, we are assuming a tax buoyancy of 1.1, which comes from an expected growth of 11.5%," Malhotra said, pointing out that the government was taking steps to improve taxpayer services and widen the tax base without changing the rates.

Nageswaran said the government was not expecting any sizable growth in exports due to uncertainty amid the geopolitical crisis. However, it wants the basket of exportable goods to expand and new trade partners globally.