Fiscal headroom should be used to spend on social sector: Ficci

The government should use the fiscal headroom, achieved due to the Reserve Bank of India (RBI) dividend of ₹2.11 trillion, to increase the spend on social sector schemes to support the rural economy, the Economic Outlook Survey released by the Federation of Indian Chambers Commerce of and Industries (Ficci) said on Thursday.

- RUCHIKA CHITRAVANSHI

The economists said the fiscal deficit target for 2024-25 could be slightly lowered, from the 5.1 per cent estimate laid out in the Interim Budget earlier this year.

The government had set the FY25 fiscal deficit target at 5.1 per cent or ₹16.85 trillion of the GDP and revised the FY24 target to 5.8 per cent from the earlier projection of 5.9 per cent. The fiscal deficit narrowed to 5.6 per cent in FY24.

The survey, while projecting annual median GDP growth of India for FY25 at 7 per cent said the upcoming Budget, is expected to introduce comprehensive measto boost employment and enhance workforce capabilities such as employment-linked incentive scheme, the urban version of the Mahatma Gandhi National Rural Employment Guarantee Scheme sector (MGNREGS).

The economists said the agricultural is expected to receive significant attention.