However, there is no mistaking the accent on fiscal belt-tightening after the inevitable departure from fiscal targets in the Covid years. In absolute terms, the fiscal deficit is down by nearly ₹50,000 crore over current year’s revised estimates to ₹16.8-lakh crore, and nearly double that over FY24 Budget estimates. However, capital expenditure has been raised by 17 per cent over the revised estimates for this fiscal of ₹9.5-lakh crore to ₹11.1-lakh crore. As a proportion of the size of the Budget, this remains quite the same as FY24, or about 22-23 per cent. This was finally a workmanlike Budget, notwithstanding signs of weaknesses in rural demand in a poor agriculture year.

Source: The Hindu February 02, 2024 12:40 UTC