Stay on fiscal glide path, economists advise FM

The Union government could target a fiscal deficit of 5.8-6 per cent of nominal GDP for 2023-24, and it should continue its capital expenditure push and look to simplify the personal income tax regime, economists recommended Finance Minister Nirmala Sitharaman and her team during their preBudget interaction on Monday.

- ARUP ROYCHOUDHURY

Starting last week, Sitharaman had eight pre-Budget consultations this time. More than 110 invitees representing seven stakeholder groups participated in these meetings, the finance ministry said in a statement. The stakeholder groups included representatives and experts from agriculture and agro-processing industry; industry, infrastructure & climate change; financial sector and capital markets; services and trade; social sector; trade unions and labour organisations; and economists.

"Most economists have suggested that the fiscal deficit be kept between 5.8 per cent and 6 per cent in order to stay on the glide path towards a medium-term target of 4.5 per cent of GDP. The suggestions were that the Centre continue with its capex push, and look to simplify taxes," said a person aware of the discussions with economists.