India's fiscal deficit will unexpectedly rise to 6.9 per cent of GDP in the current fiscal and it is being targeted to be cut to 6.4 per cent in the next financial year.
The fiscal deficit or the gap between expenditure and revenue was estimated at 6.8 per cent of the gross domestic product (GDP) in the current financial year ending March 31, 2022.
Union Budget 2022-23 FULL COVERAGE
Total expenditure during the current year is estimated at Rs 39.45 lakh crore while total resources mobilisation would be Rs 22.84 lakh crore, Finance Minister Nirmala Sitharaman said while unveiling Budget 2022-23 in the Lok Sabha on Tuesday.
The FM said the Union Budget lays down the foundation to steer the economic developments for the next 25 years with holistic and future priorities. The minister said the Union Budget for 2022-23 seeks to lay the foundation and give a blueprint to steer the economy over the Amrit Kaal of the next 25 years from India at 75 to India at 100. It continues to build on the vision drawn in the Budget of 2021-22.
"We are marking Azadi ka Amrit Mahotsav, and have entered into Amrit Kaal, the 25-year-long leadup to India@100," the minister said.
The fundamental tenets of the Budget include transparency of financial statement and fiscal position, and reflect the government's intent, strengths, and challenges, she said. Sitharaman said the Budget continues to provide impetus for growth.
On disinvestment, she said that government's receipt from disinvestment proceeds in the next financial year beginning April have been pegged at Rs 65,000 crore, lower than the current year's estimated mobilisation of Rs 78,000 crore. With budgeted disinvestment targets rarely met, Finance Minister Nirmala Sitharaman's fourth Budget drastically reduced the receipts to an achievable Rs 78,000 crore in the current fiscal, from Rs 1.75 lakh crore budgeted earlier.
So far, the government has mopped up Rs 12,030 crore from PSU disinvestment and strategic sale. This include Rs 2,700 crore from Air India privatisation and another Rs 9,330 crore through minority stake sale in various Central Public Sector Enterprises (CPSEs).
In the current fiscal, the big-ticket disinvestment of Life Insurance Corporation (LIC) is in the works, besides the strategic sale of BPCL, Shipping Corp, Container Corp, RINL and Pawan Hans. The government has missed the disinvestment target for three consecutive years.
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