homeeconomy NewsBudget 2024: NK Singh says fiscal deficit target 'daunting', signals commitment to macro stability
Budget 2024: NK Singh says fiscal deficit target 'daunting', signals commitment to macro stability
The government's fiscal resolve is an important signal to investors and rating agencies on India’s continued adherence to its goals even in an election year, said the Chairperson of the 15th Finance Commission.
In her Budget 2024 address on February 1, Finance Minister Nirmala Sitharaman outlined the government's fiscal deficit target of 5.1% in the upcoming fiscal year (FY25). This goal aligns with a broader fiscal consolidation strategy aimed at bringing the deficit down to below 4.5% by FY26, Sitharaman said.
Fiscal deficit for the current financial year (FY24) is expected to be 5.8%, lower than the 5.9% budgeted estimate.
According to NK Singh, Chairperson of the 15th Finance Commission, the 0.7% expected fiscal consolidation is a "fairly daunting target' in absolute terms.
"It’s a clear signal on the government’s continued commitment to a path of macroeconomic stability, and fiscal consolidation, and I have no doubt that the debt numbers will also show this kind of fiscal resolve and look in a southward direction," he told CNBC-TV18 discussing his key takeaways from the six budget by FM Sitharaman.
This fiscal resolve, Singh noted, is very important as a signal to investors and rating agencies on India’s continued adherence to its goals even in an election year.
Singh also referred to Finance Minister Nirmala Sitharaman's emphasis on Trust, Confidence, and the Blessings.
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He discussed a notable shift in the states' approach to fiscal management pointing out that states have purposefully utilised funds, with expenditure patterns showing a switch towards long-term multiplier growth.
Singh lauded this as a decisive move towards "Viksit Bharat," emphasising the states' crucial role in contributing to the nation's long-term growth story.
For more, watch the accompanying video
(Edited by : Shweta Mungre)
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