India’s finance minister, Nirmala Sitharaman, said on Thursday the country’s fiscal deficit for fiscal year 2024 will narrow to 5.8% from 5.9% estimated earlier.
For the year ending 2024-2025 Sitharaman forecast fiscal deficit to be at 5.1% of gross domestic product, while presenting the interim budget before the general elections.
Capital expenditure target was increased 11.1% to 11.11 trillion rupees ($133.9 billion) for fiscal year 2025.
Noting that India’s economy will see an “unprecedented” development, Sitharaman highlighted four major areas of focus for the government: poverty, youth, women and farmers.
The Finance Ministry said earlier this week that India could become the world’s third-largest economy by 2027 with a gross domestic product of $5 trillion.
“Food, fertilizer, fuel and finances are issues due to pandemic, but India has successfully navigated its way,” Sitharaman said, while reiterating the government’s goal of a developed India by 2047.
the interim budget is seen as a stop-gap financial plan during an election year, aimed at meeting immediate financial needs before a new government is formed. The full-fledged union budget will only be released after the elections.
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