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Fiscal consolidation being done meeting all priority expenditure: Ajay Seth
Jul-24-2024

Ajay Seth, Secretary at Department of Economic Affairs under Ministry of Finance has said fiscal consolidation by way of gliding down on fiscal deficit path is being done while meeting all essential expenditure. He stated ‘Fiscal consolidation is being done while meeting all essential expenditure, meeting all priority expenditure, providing for new initiatives like employment in the skilling this year and is still leaving enough for the private sector and taking the government finances to a more sustainable.’

The fiscal deficit target for 2024-25 is pegged at 4.9 per cent, better than what was estimated in the Interim Budget. He said ‘We have got some more money from RBI (as dividend), and that has been utilized to retire some of the high-cost debt, etc. So we are fairly confident about 4.9 per cent, and this is on way to the final goal, or rather the next step, which has been announced, to become less than 4.5 per cent.’

Further, he said that the purpose behind it is that if the government is borrowing moderately, there will be more money available for the private sector business. Presenting the Union Budget for 2024-25, Union Finance Minister Nirmala Sitharaman pegged the fiscal deficit target at 4.9 per cent of gross domestic product (GDP). In the Interim Budget tabled on February 1, she pegged it at 5.1 per cent of GDP.


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