NEW DELHI (Reuters) – India’s government on Wednesday unveiled a $550 billion budget for the next fiscal year starting April 1, with a plan for record capital spending while reining in the fiscal deficit.
Prime Minister Narendra Modi’s party, which faces elections in key states this year and a national vote in 2024, is under pressure to create jobs in the country of 1.4 billion people, where many have struggled to find jobs and decent wages.
Here are some key figures in the graphs from the budget provided by Finance Minister Nirmala Sitharaman.
Where will the money for the fund’s spending come from?
The government is targeting revenue revenue growth of 12% to Rp26.32 trillion.
tax revenue
For this year, the government is targeting an 11.4% growth in net tax revenue to 23.3 trillion rupees.
market borrowing
Total market borrowing is estimated at 15.43 trillion rupees ($189 billion), while net borrowing is seen at 11.81 trillion rupees.
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The net borrowing excludes 781 billion rupees of bonds given to states on account of making up for the GST shortfall, which reduces the repayment installments due next year.
New Delhi is also aiming to swap 1 trillion rupees worth of bonds next year, after swapping 1.03 trillion rupees worth of bonds this year.
investment recipients
The government expects to collect 510 billion rupees from share sales in various state-run companies.
Expenditure surgeries
The government raised the spending target by 7.5% to 45.03 trillion rupees for 2023/24.
Capital expenditures
The government will spend 10 trillion rupees on long-term capital expenditures in 2023/24, to expand the strategy adopted to revive growth in the wake of the COVID-19 pandemic.
The appropriation is higher than the 7.5 trillion rupees budgeted for the current year. The year-over-year increase of 33% follows last year’s jump of 35%.
major subsidies
The government cut the main subsidy by 28% to 3.75 trillion rupees for the next fiscal year.
fiscal deficit
The government is targeting a budget deficit of 5.9% of GDP for 2023/24, down from 6.4% this year. A Reuters poll put the budget deficit at 6 percent of gross domestic product.
($1 = 81.8150 Indian Rupees)
Juma Aftab Ahmed. Editing by Kim Coghill
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