Lower nominal GDP makes fiscal deficit target steeper

WHILE India's real GDP growth is estimated to be 7.3% for FY24 --much higher than most predictions-- the nominal GDP or the GDP at current prices (202324 prices) is expected to be only 8.9%, which is lower than the budgeted target of 10%.

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This means that the size of the Indian GDP (in current prices) would likely be ₹297 lakh crore at the end of the current financial year instead of the budgeted estimate of ₹302 lakh crore. This could make it difficult for the government to meet its fiscal deficit target.