(Z.N)
Robust direct and indirect tax collections are expected to give enough headroom to the Centre to lower the fiscal deficit target for FY23.
Accordingly, industry watchers have estimated the FY23 fiscal deficit target to range from 5.8-6.4 per cent.
The FY22 deficit has been pegged at Rs 15.06 lakh crore.
“The Budget this year will be watched out for the pace of fiscal consolidation. The balancing factor for higher spending would be next year’s divestment target, which could still be kept robust even as BPCL (and possibly even mega LIC IPO) may get pushed to next fiscal,” said Madhavi Arora, Lead Economist, Emkay Global.
“The revenue expenditure pressure may continue in FY23 with the year being a heavy election calendar in key states of Uttar Pradesh, Punjab and Gujarat, and early signs of easing consumption momentum, led by the rural areas.”
Recent data furnished by the Controller General of Accounts (CGA) showed that the fiscal deficit — the difference between revenue and expenditure — for the April-November 2021-22 period stood at Rs 695,614 crore, or 46.2 per cent of the Budget estimates (BE).
