India’s fiscal deficit may breach the 5.9% of GDP target for this year and could hit 6%, even though tax collections have been buoyant and may offset a wide shortfall in disinvestment outcomes, due to the likelihood of revenue spending exceeding the Budget Estimate by about ₹2 lakh crore, India Ratings and Research said on December 26.
The Centre has recently secured Parliamentary approval for the first supplementary demand for grants this year, involving an additional cash outgo of ₹53,378 crore, lifting its total spending commitment for 2023-24 to ₹45.6 lakh crore, including about ₹35.6 lakh crore of revenue expenditure and ₹10.1 lakh crore of capital expenditure.
