Budget of world's fastest growth in economy; Key numbers to watch out for from Nirmala Sitharaman's speech
By Team Newsable | First Published Feb 1, 2023, 10:30 AM ISTIn 2019, during her first Budget, Nirmala Sitharaman replaced the leather briefcase, which had been in use for decades for carrying Budget documents, with a traditional 'bahi-khata' wrapped in red cloth.
Union Finance Minister Nirmala Sitharaman will be presenting her fifth Budget that may be a walk on tightrope between staying fiscally prudent and meeting general public expectations of lower taxes and a wider social security net, while at the same time firing the engines of the economy.
In 2019, during her first Budget, Nirmala Sitharaman replaced the leather briefcase, which had been in use for decades for carrying Budget documents, with a traditional 'bahi-khata' wrapped in red cloth.
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Here are the key numbers to watch for in Budget 2023-24
1. Fiscal Deficit:
The fiscal deficit, which is the difference between the government expenditure and income, for the current fiscal ending March 2023 is 6.4 percent, against 6.71 percent in the last fiscal. The number for 2023-24 would be in focus as it is widely expected that the government would open its purse strings in an election year.
Also read: Budget 2023: What is Guillotine, how does it help the Centre?
2. Disinvestment/Privatisation:
Like the last four years, the budgeted disinvestment target is likely to be missed. It is expected the government would set a realistic target for next fiscal.
3. Capital Expenditure:
The Centre's planned capital expenditure for this fiscal year is budgeted at Rs 7.5 lakh crore, higher than Rs 5.5 lakh crore in the last fiscal. The government has been pushing infrastructure creation and also incentivising states to step up capex.
Also read: Budget 2023: Watch out for infrastructure, defence and auto stocks
4. Tax Revenue:
The Budget had pegged direct and indirect tax mop-up at Rs 14.20 lakh crore and Rs 13.30 lakh crore for current fiscal, taking the total figure to Rs 27.50 lakh crore. The government's tax revenues are expected to overshoot the budget estimates by about Rs 4 lakh crore on buoyant income tax and customs duty.
5. Borrowing:
In the current financial year ending March 31, the Centre's gross borrowing budget was at Rs 14.31 lakh crore. The government borrows from the market to fund its fiscal deficit and with tax revenues seeing an uptick, the government has cut its gross borrowings by Rs 10,000 crore to Rs 14.21 lakh crore. The borrowing number would be watched by the market, especially on the back of expected higher capital expenditures to boost growth.
(With inputs from PTI)
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