NEW DELHI, Feb 1 (Portal) – India’s government on Wednesday unveiled a $550 billion budget for the next fiscal year, which begins April 1, with a plan for record investments while containing the budget deficit.
Prime Minister Narendra Modi’s party, which faces elections in key states this year and a national vote in 2024, is under pressure to create jobs in the country of 1.4 billion people, where many are struggling to find jobs and decent wages.
Below are some key figures in graphs from the budget presented by Finance Minister Nirmala Sitharaman.
WHERE DOES THE MONEY COME FROM TO FUND THE EXPENSES?
The government is targeting revenue growth of 12% to Rs.26.32 trillion.
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TAX INCOME
For the year, the government is targeting net tax revenue growth of 11.4% to Rs.23.3 trillion.
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Borrowing from the Market
Gross market borrowing is estimated at Rs. 15.43 trillion (US$189 billion), while net borrowing is estimated at Rs. 11.81 trillion.
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The net borrowing excludes 781 billion rupees in borrowings given to governments to compensate for a shortfall in the goods and services tax, reducing repayments due next year.
New Delhi also intends to swap 1 trillion rupees worth of bonds next year after swapping 1.03 trillion rupees worth of bonds this year.
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SALES REVENUE
The government expects to raise 510 billion rupees from the sale of shares in various state-owned companies.
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Spending spurts
The government increased its spending target by 7.5% to Rs.45.03 trillion for 2023/24.
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INVESTMENTS
The government will spend 10 trillion rupees on longer-term investments in 2023/24, expanding a strategy to revive growth after the COVID-19 pandemic.
The allocation is higher than the 7.5 trillion rupees budgeted for the current year. The 33% year-over-year increase follows last year’s 35% increase.
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IMPORTANT SUBSIDIES
The government cut key subsidies by 28% to Rs.3.75 trillion for the next fiscal year.
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BUDGET DEFICIT
The government is targeting a budget deficit of 5.9% of GDP in 2023/24, after 6.4% this year. A Portal poll had put the budget gap at 6% of GDP.
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($1 = 81.8150 Indian Rupees)
Compiled by Aftab Ahmed; Edited by Kim Coghill
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