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Government to pursue fiscal discipline in FY25, SBI CAPS
The Business Guardian
|July 11, 2024
A recent report by the State Bank of India (SBICAPS), titled “Indian Economy: Maintaining Momentum on a Deteriorating Global Pitch,” indicates that the Indian government is set to continue its path of fiscal consolidation in FY25.
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This outlook is bolstered by robust advance tax collections, a lean treasury bill borrowings calendar, and a record dividend from the Reserve Bank of India (RBI).
The report highlights that the government has outperformed its FY24 revised estimate target for a fiscal deficit of 5.8%, achieving 5.6% of nominal GDP. This success is attributed to effective fiscal management, buoyant tax collections, controlled revenue expenditure, and spending restrictions.
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