Government has tabled the Economic Survey for 2023-24
Today the Government has tabled the Economic Survey for 2023-24 in Lok Sabha. The Economic Survey 2023-24 expects India's fiscal deficit to drop to 4.5 percent of GDP in 2024-25 and further down in 2025-26.In this connection, it is relevant to recall that in the Interim Budget presented in February 2024, Finance Minister Ms. Nirmala Sitharaman aimed to bring the fiscal deficit to 5.1 percent in 2024-25. However, due to the economic survey prediction mentioned above, economists expect the Finance Minister to set a revised target of curtailing fiscal deficit below 4.5 percent.
The Economic Survey has also highlighted that India's fiscal deficit decreased from 6.4 percent in 2022-23 to 5.6 percent in 2023-24. This reduction was possible due to robust growth in direct and indirect tax revenues caused by resilient economic activities. Not only that, improved tax compliance contributed to higher tax collections, surpassing the budgetary estimates.
The Survey has also mentioned that revenue receipts were strengthened by non-tax revenue exceeding budget estimates, particularly from RBI dividends.
Overall, the Survey indicates more and more better performance by Indian economy in the coming years.