7 key figures in Budget 2024 to gauge Indian economy’s health under Sitharaman

Union finance minister Nirmala Sitharaman will present the Union Budget 2024 in Parliament today, marking her seventh consecutive budget, surpassing the late Morarji Desai’s record of six. This will be the first budget of Narendra Modi’s third term.

As a part of Union Budget documents, FM Sitharaman will table financial documents in Lok Sabha at 11am. The spotlight will be on key figures showcasing the growth of the Indian economy under PM Modi and FM Sitharaman.

Key numbers to watch for the first full Budget of Modi 3.0

Fiscal Deficit:

• The budgeted fiscal deficit for the current fiscal year is projected at 5.1%, down from 5.8% in the last fiscal year.

• This improvement is expected due to robust tax revenue growth.

• The government aims to reduce the fiscal deficit to 4.5% of GDP by FY26.

Capital Expenditure:

• Planned capital expenditure for this fiscal year is budgeted at ₹11.1 lakh crore, up from ₹9.5 lakh crore last year.

• The government is prioritizing infrastructure development and incentivizing states to increase their capital expenditure.

Tax Revenue:

• The Interim Budget projects gross tax revenue at ₹38.31 lakh crore for 2024-25, reflecting an 11.46% growth over the previous fiscal year.

• This includes ₹21.99 lakh crore from direct taxes (personal income tax and corporate tax) and ₹16.22 lakh crore from indirect taxes (customs, excise duty, GST).

GST:

• Goods and Services Tax (GST) collection for 2024-25 is estimated to rise to ₹10.68 lakh crore, an increase of 11.6 per cent.

Borrowing:

• The government’s gross borrowing for the current financial year is budgeted at ₹14.13 lakh crore.

• The market will closely monitor borrowing, especially following a higher-than-expected dividend from the RBI and financial institutions.

Nominal GDP:

• India’s nominal GDP growth (real GDP plus inflation) for the current fiscal year is estimated at 10.5 per cent, reaching ₹327.7 trillion.

• With expectations of a normal monsoon, improved revenue collections, and increased rural consumption, there could be an upward revision in growth estimates.

• Real GDP growth for the current fiscal year is projected at 7.2 per cent, according to the RBI.

Dividend:

• The Interim Budget had projected ₹1.02 lakh crore from the RBI and financial institutions, but this will be revised upwards due to the RBI’s surplus transfer of ₹2.11 lakh crore in May.

• Additionally, ₹43,000 crore is expected from Central Public Sector Enterprises (CPSEs).