Union Budget Review 2023-2024

Fiscal deficit for FY2024 at 5.9%. The deficit for FY2023 was retained at 6.4%. The Government in line with its aim to reach a fiscal deficit level below 4.5% of the GDP by 2025-26 has fixed the deficit for 2023-24 at 5.9%. The reduction in the Fiscal deficit figure was expected led by a reduction in subsidies post-pandemic and moderating global commodity inflation. The deficit figure of 6.4% for FY2023 was retained as budgeted.

Slippage is largely on account of higher subsidies: The Government expenditure for FY2023 was revised upwards to 41.8 lahks Cr. from the budget estimate of 39.4 lahks Cr. This was led primarily on account of higher revenue expenditure. Revenue expenditure for the year stood at 34.6 lahks Cr., higher than budget estimates of 31.9 lahks Cr.

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Higher than budgeted revenue expenditure was largely driven by more allocation under Fertilizer and food subsidy along with new allocation towards retirees of armed forces under ‘one rank one pension’. Higher provisions of one-time grants to Oil Marketing Central Public Sector companies for meeting under-recoveries and track renewals of railways further contributed to the slippage.