According to an economist who spoke on the condition of anonymity, the schemes outlined by the Congress in their manifesto could lead to a slippage of 1.5-2 percentage points to the fiscal deficit target of 5.1 percent for FY25 assuming everything else stays the same. But, measures like rationalising expenditure coupled with higher revenues on account of a widening tax base could very well limit any potential, sharp escalations to the deficit.
The southern state has done splendidly in the last 20 years, but its infrastructure growth is lagging the rest of the country. In 2023-24, it allocated 2.1 percent of its total expenditure towards roads and bridges, which is sharply lower than the 4.5 percent average allocation by states.
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