Indian Economy.

New Delhi:

The central and state governments can make a provision for taking a total loan of Rs 2.3 lakh crore more from the market in the next financial year.

However, the fiscal deficit in the Union Budget may come down to 5.8 per cent of the Gross Domestic Product (GDP), less than expected.

It has been said in a report.

ICRA Ratings predicted that the gross market borrowing of the central government and state governments will also increase due to higher repayment of old debt.

The report estimated that the total debt of the Center and the states would increase from Rs 22.1 lakh crore in 2022-23 to Rs 24.4 lakh crore in 2023-24.

In this, the borrowing of the Center can increase to Rs 14.8 lakh crore and the borrowing of the states can be Rs 9.6 crore.

The agency also said that the Center may go ahead with the fiscal deficit target of 5.8 per cent of gross domestic product (GDP) for 2023-24, which is much better than the estimated 6.4 per cent deficit for the current fiscal year.

The agency's Chief Economist Aditi Nayar said that the apprehension of the impact of recession on global growth is increasing.

In such a situation, the budget for 2023-24 should focus on maintaining the momentum of domestic growth and at the same time show a continued commitment to financial inclusion and focus on limiting the increase in market borrowings.

He expressed hope that in the upcoming budget, central capital expenditure can be increased to Rs 8.5-9 lakh crore and a target will be set to bring down the fiscal deficit to 5.8 percent of GDP by reducing subsidies.

Despite this, the gross market borrowing of the Center will increase from Rs 14.1 lakh crore in 2022-23 to Rs 14.8 lakh crore in 2023-24 after servicing the loans.

Nair said the revenue deficit is projected to come down marginally from Rs 10.5 lakh crore to Rs 9.5 lakh crore in 2023-24 and the fiscal deficit from Rs 17.5 lakh crore to Rs 17.3 lakh crore.

In this way, the fiscal deficit as a share of GDP can come down from 6.4 per cent to 5.8 per cent.

He said that due to the increase in direct tax and GST collection, net tax receipts can exceed the budget target by Rs 2.1 lakh crore in 2022-23.

Direct tax collection has increased by 24.58 percent to Rs 14.71 lakh crore in the current financial year till January 10, which is more than 86 percent of the budget estimate.

Nair said that the government's net borrowing in 2023-24 could be Rs 10.4 lakh crore, which is less than Rs 10.9 lakh crore in 2022-23.

But due to repayment of more debt, the gross market borrowing will increase from Rs 14.1 lakh crore to Rs 14.8 lakh crore.


Featured Video Of The Day

Spotted at Vijay Deverakonda Airport