Fiscal Deficit: Sitharaman emphasizes fiscal consolidation, targeting a fiscal deficit of 5.1% for FY25, lower than the previous year’s 5.8%. The government aims for a deficit below 4.5% by FY26.
Capital Expenditure: The budget allocates a capex outlay of 3.4% of GDP for FY25, setting a capital spending plan of Rs 11.11 lakh crore. This surpasses the FY24 budgeted amount of Rs 10 lakh crore.
Market Borrowings: Gross Market Borrowing decreased to Rs 14.1 lakh crore from the estimated Rs 15.43 lakh crore for 2023-24. Borrowings impact funds for businesses and surged post-pandemic. The finance minister aims to reduce borrowings in the coming years.
GDP: The budget allocates a 3.4% GDP capex outlay for FY25, featuring a Rs 11.11 lakh crore capital spending plan, surpassing the FY24 budget of Rs 10 lakh crore.
Divestments: In her budget speech, FM Nirmala Sitharaman revealed a reduced divestment target of Rs 30,000 crore for FY24, compared to the estimated FY25 target of Rs 50,000 crore. Experts advocate higher divestment to prioritize sectors with increased investor interest.