However, this number may see some change given the adverse revenue deficit (the excess of revenue expenditure over revenue receipts) for the last financial year. A crucial variable in this regard is the finance ministry’s assumption of the nominal GDP growth for the current year. The nominal GDP growth (that is GDP growth at current prices) is the most fundamental building block of the Budget-making exercise. In the interim Budget, then finance minister Piyush Goyal had assumed a nominal GDP growth rate of 11.5%. As such, the assumption about the nominal GDP growth is another key variable to watch out for in this Budget.

Source: Indian Express July 04, 2019 18:33 UTC