New Delhi, Feb 1 (KNN) In her interim budget speech for 2024, Finance Minister Nirmala Sitharaman outlined key fiscal estimates and measures, projecting a balanced approach to economic management.

The budget speech covered crucial aspects such as total receipts, expenditure, fiscal deficit, and initiatives aimed at supporting state capital expenditure.

The Revised Estimate of total receipts, excluding borrowings, stands at Rs 27.56 lakh crore, with tax receipts contributing significantly at Rs 23.24 lakh crore. Simultaneously, total expenditure is projected to be Rs 44.90 lakh crore.

A notable highlight is the anticipated growth in revenue receipts, expected to reach Rs 30.03 lakh crore, signaling robust economic momentum and increased formalization.

Despite moderation in nominal growth estimates, the Revised Estimate of the fiscal deficit stands at 5.8 per cent of GDP, an improvement from the Budget Estimate.

Looking ahead to 2024-25, the Finance Minister envisions total receipts (excluding borrowings) and total expenditure at Rs 30.80 lakh crore and Rs 47.66 lakh crore, respectively. Tax receipts are estimated at Rs 26.02 lakh crore.

Continuing a crucial initiative, Sitharaman announced the extension of the fifty-year interest-free loan scheme for capital expenditure to states, allocating a total outlay of Rs 1.3 lakh crore for the year.

The commitment to fiscal consolidation remains steadfast, in line with the previous Budget Speech for 2021-22. The goal is to reduce the fiscal deficit below 4.5 per cent by 2025-26, with the estimated fiscal deficit for 2024-25 at 5.1 per cent of GDP.

To support this fiscal strategy, gross and net market borrowings through dated securities for 2024-25 are estimated at Rs 14.13 and Rs 11.75 lakh crore, respectively. These figures represent a decrease from the borrowings in 2023-24.

With private investments gaining momentum, the lower borrowings by the Central Government are expected to enhance credit availability for the private sector, fostering a conducive environment for economic growth and development.

(KNN Bureau)