Modi Govt May Stick To Its Fiscal Deficit Target. Here's Why

The budgeted fiscal deficit to GDP ratio for 2023-24 is 5.9%. ( Image Source :Canva )

The government is on the path of fiscal consolidation along with economic growth. However, supplementary demand and slower nominal GDP growth may exceed the fiscal deficit target by a small margin. The government has sought Parliament’s approval for additional gross expenditure of Rs 1.29 trillion (Rs 1.29 lakh crore). This includes net cash outflow of Rs 0.58 trillion through supplementary demands for the first tranche of grants in the current financial year as expenditure exceeding the