NEW DELHI, Feb 1 (Reuters) – India’s government on Wednesday unveiled a $550 billion budget for the next fiscal year, which begins on April 1, with a plan for record capital spending while curbing the fiscal deficit.
Prime Minister Narendra Modi’s party, which faces elections in key states this year and a national vote in 2024, has been under pressure to create jobs in the country of 1.4 billion where many have struggled to get employment and a decent wage.
Below are some key figures in graphs from the budget presented by Finance Minister Nirmala Sitharaman.
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The government is targeting revenue growth of 12% to 26.32 trillion rupees.
For the year, the government aims for an 11.4% increase in net tax revenue to 23.3 trillion rupees.
Gross market lending is estimated at 15.43 billion rupees ($189 billion), while net lending is seen at 11.81 trillion rupees.
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The net borrowing excludes 781 billion rupees of bonds given to states to compensate for a lack of goods and services tax, reducing repayments next year.
New Delhi also aims to float bonds worth 1 trillion rupees next year, after floating bonds worth 1.03 trillion rupees this year.
The government expects to raise 510 billion rupees from the sale of investments in various state-owned companies.
The government raised its spending target by 7.5% to 45.03 trillion rupees for 2023/24.
The government will spend 10 trillion rupees on long-term capital expenditure in 2023/24, extending a strategy adopted to revive growth after the COVID-19 pandemic.
The allocation is higher than the 7.5 trillion rupees budgeted for the current year. The year-over-year increase of 33% follows last year’s jump of 35%.
The government cut major subsidies by 28% to 3.75 trillion rupees for the next fiscal year.
The government will target a budget deficit of 5.9% of GDP for 2023/24, down from this year’s 6.4%. A Reuters poll pegged the budget gap at 6% of GDP.
($1 = 81.8150 Indian Rupees)
Compiled by Aftab Ahmed; Editing by Kim Coghill
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