India’s fiscal deficit is expected to exceed the target due to higher-than-budgeted revenue expenditure and lower-than-budgeted nominal GDP. The Centre has increased subsidies for fertilizers and the Mahatma Gandhi National Rural Employment Guarantee Scheme, leading to additional spending. India Ratings predicts that tax collection will surpass the target due to a wider tax base and improved compliance. However, capital receipts are lagging. The agency anticipates a second supplementary demand for grants, resulting in increased revenue expenditure. The fiscal deficit is projected to be Rs 2 lakh crore higher than the budgeted amount in 2023-24. Tap for more at TelegraphIndia
