New Delhi, Jan 21 (KNN) For the upcoming Union Budget, expectations are being closely observed in various sectors, with some experts estimating the FY23 fiscal deficit target to range from 5.8-6.4 per cent.

It is likely that industrial and agro states which are election-bound such as Uttar Pradesh, Punjab and Gujarat will continue to face revenue expenditure pressure in the coming financial year. 

However, the rural areas is expected to lead the early signs of easing consumption momentum.

To lower the fiscal target for FY23, the strong direct and indirect tax collections will give that push.

According to industry watchers, the deficit in FY22  has been pegged at Rs 15.06 lakh crore.

As per data by the Controller General of Accounts (CGA), the fiscal deficit for April to November 2021-22 period stood at Rs 695,614 crore, or 46.2 per cent of the Budget estimates (BE).

Increase in capital expenditure while conforming to the fiscal consolidation is expected. 

This was stated by the finance minister last year  to reach the target of 4.5 per cent fiscal deficit by 2025-26.