Union Budget committed to maintain economic stability: Report

The Centre’s decision to maintain its Capital Expenditure growth is poised to account for 23 per cent of total government spending and 3.4 per cent of the GDP, signaling a robust drive towards infrastructure development and economic expansion, according to the Jefferies Greed and Fear report.

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The Union Budget for the fiscal year 2024-25, presented in Parliament this week reflects a clear commitment to maintaining economic stability and fostering growth through substantial capital expenditure (capex) investments.

One of the standout aspects of the budget is the projected central government fiscal deficit, set at 4.9 per cent of GDP for this fiscal year.

This figure is notably lower than the market expectations of 5.3 per cent prior to the February budget announcement.

Jefferies’ head of India research, Mahesh Nandurkar, expressed confidence in the government’s trajectory, suggesting that the fiscal deficit could potentially drop below 4.5 per cent in the next fiscal year.