India’s Finance Minister Nirmala Sitharaman along with her staff poses for pictures as she leaves the Finance Ministry Office to present the annual budget in parliament in New Delhi on February 1, 2024.
Sajjad Hussain | Afp | Getty Images
India’s finance minister, Nirmala Sitharaman, said on Thursday the country’s fiscal deficit for fiscal year 2024 will narrow to 5.8% from 5.9% estimated earlier.
For the year ending 2024-2025 Sitharaman forecast fiscal deficit to be at 5.1% of gross domestic product, while presenting the interim budget before the general elections.
Capital expenditure target was increased 11.1% to 11.11 trillion rupees ($133.9 billion) for fiscal year 2025.
Noting that India’s economy will see an “unprecedented” development, Sitharaman highlighted four major areas of focus for the government: poverty, youth, women and farmers.
The Finance Ministry said earlier this week that India could become the world’s third-largest economy by 2027 with a gross domestic product of $5 trillion.
“Food, fertilizer, fuel and finances are issues due to pandemic, but India has successfully navigated its way,” Sitharaman said, while reiterating the government’s goal of a developed India by 2047.
the interim budget is seen as a stop-gap financial plan during an election year, aimed at meeting immediate financial needs before a new government is formed. The full-fledged union budget will only be released after the elections.
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