Budget 2024: India Ratings and Research warns that India s fiscal deficit could exceed the targeted 5.9% for FY24 due to increased expenses and lower nominal GDP. The interim budget measures will be crucial to stick to fiscal discipline, which is key for economic stability. India would require improved tax collections and has to meet divestment goals for fiscal prudence.
India s fiscal deficit for the first half of the current fiscal year, ending in September, was 7.02 lakh crore rupees, equivalent to 39.3% of annual estimates, an increase from the previous year s 37.3%. The government aims to reduce the fiscal gap to 5.9% of GDP, down from 6.4% in the previous financial year.