NEW DELHI, Feb 1 (Reuters) – India’s government on Wednesday unveiled a $550 billion budget for the next fiscal year that starts on April 1, with a plan for record capital spending while reining in the deficit. fiscal.
Facing elections in key battleground states this year and a national vote in 2024, Prime Minister Narendra Modi’s party has been under pressure to create jobs in the country of 1.4 billion people, where many have struggled to get a job. employment and a decent wage.
Below are some key figures in charts from the budget presented by Finance Minister Nirmala Sitharaman.
WHERE WILL THE MONEY COME FROM TO FINANCE THE EXPENSES?
The government is targeting revenue receipts growth of 12% to Rs 26.32 trillion.
TAX REVENUE
For this year, the government is targeting 11.4% growth in net tax revenue to Rs 23.3 trillion.
MARKET INDEBTEDNESS
Gross market borrowing is estimated at Rs 15.43 trillion ($189 billion), while net borrowing is estimated at Rs 11.81 trillion.
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Net borrowing excludes Rs 781 billion of bonds issued to states on account of compensation for a shortfall in goods and services tax, reducing repayments due next year.
New Delhi also aims to swap Rs 1 trillion worth of bonds next year, after swapping Rs 1.03 trillion worth of bonds this year.
DIVESTMENT RECEIPTS
The government hopes to raise Rs 510,000 crore from the sale of stakes in various state-owned companies.
SPENDING INCREASES
The government raised its spending target by 7.5% to Rs 45.03 trillion for 2023/24.
CAPITAL EXPENDITURE
The government will spend Rs 10 trillion on longer-term capital expenditures in 2023/24, extending a strategy adopted to revive growth following the COVID-19 pandemic.
The allocation is higher than the Rs 7.5 trillion budgeted for the current year. The 33% year-over-year increase follows last year’s 35% jump.
MAIN SUBSIDIES
The government cut major subsidies by 28% to Rs 3.75 trillion for the next fiscal year.
FISCAL DEFICIT
The government will target a budget deficit of 5.9% of GDP for 2023/24, down from 6.4% this year. A Reuters poll had pegged the budget gap at 6% of GDP.
($1 = 81.8150 Indian rupees)
Compiled by Aftab Ahmed; Edited by Kim Coghill
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