homeeconomy NewsBudget 2024: Economists weigh in on expectations for fiscal deficit, divestment, and more
Budget 2024: Economists weigh in on expectations for fiscal deficit, divestment, and more
Aditi Nayar, Chief Economist at ICRA, and Devendra Pant, Chief Economist and Senior Director of public Finance at India Ratings & Research shared their expectations from Budget 2024 in a conversation with CNBC-TV18.
Aditi Nayar, Chief Economist at ICRA, and Devendra Pant, Chief Economist and Senior Director of public Finance at India Ratings & Research shared their expectations from Budget 2024 in a conversation with CNBC-TV18.
"We are penciling in higher revenues on direct taxes, encompassing both income tax and corporate tax. The goods and services tax (GST) has been performing well, although there are some lags, particularly on the excise side," noted Nayar.
She said while non-tax revenues are buoyed by substantial funds from dividends and profits, a shortfall on disinvestment may somewhat offset the gains. Consequently, she anticipate a modest upside on the net receipts to the center, amounting to approximately half a trillion rupees.
Pant echoed a similar sentiment, projecting an optimistic outlook for net tax revenues. "We expect net tax revenues to surpass the budget estimates by ₹1.2 trillion, reaching around ₹24.5 trillion. Non-tax revenues are also anticipated to exceed the government's initial estimates by approximately ₹700 trillion," he stated.
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However, Pant expects disinvestment to be the key contributor to the higher fiscal deficit. Despite an expected marginal increase in the overall fiscal deficit, it aligns closely with the budgeted figures, he explained.
He expects fiscal deficit of around 6% of the GDP this year.
Budget Day approaches.
For more, watch the accompanying video
(Edited by : Shweta Mungre)
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