Economists estimate fiscal deficit between 5.8%-6% of GDP in FY24

Economists expect the Centre to peg its fiscal deficit for 2023-24 between 5.8 per cent and 6 per cent of GDP, aided by lower subsidies. Although moderation in global commodity prices is likely to create a fiscal space but economists expect rural and welfare spending to increase next year as the government prepares the ground for general elections and assembly elections in multiple states.

Fiscal deficit estimate for FY24
Fiscal year Fiscal deficit (% of GDP)
Bank of Baroda 5.8-6.0
Barclays 5.8
HDFC 5.8
ICRA 5.8
ICICI Securities Primary Dealership 5.8
Nomura 5.9
Goldman Sachs 5.9
Morgan Stanley 5.9
Crisil 6.0
State Bank of India 6.0
Source: As per a report in Economic Times