Goldman Sachs expects India to trim its fiscal deficit aim by 50 basis points for the financial year 2023-24, as it balances spending priorities and fiscal prudence in the upcoming budget, news agency Bloomberg reported.
The global financial services firm said that the government will consolidate its fiscal deficit of the GDP in the new fiscal year, helped by a reduction in food and fertilizer subsidies.
Rural employment and housing are likely to be in focus, Bloomberg said quoting Goldman economists Andrew Tilton and Santanu Sengupta.
Budget Expectations-2023 Live Updates
The government will maintain capital expenditure and increase welfare spending as seen in pre-election budgets, the economists wrote.
They expect the government borrowing in the new fiscal to remain elevated.
Moreover, India’s fiscal deficit for the first seven months of FY 2022-23 was 7.58 lakh crore rupees, or 45.6% of annual estimates.
While presenting the budget for the current fiscal year on February 1, 2022, Union Minister for Finance and Corporate Affairs Nirmala Sitharaman had said that the fiscal deficit in 2022-23 is estimated at 6.4 per cent of GDP.
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