NEW DELHI, Feb 1 (Reuters) – India’s government on Wednesday unveiled a $550 billion budget for the next fiscal year which starts on April 1, with a record capital spending plan while containing the budget deficit.
Prime Minister Narendra Modi’s party, which faces elections in key states this year and a national vote in 2024, has come under pressure to create jobs in the country of 1.4 billion people where many struggled to find a job and a decent wage.
Here are some key figures in graphs from the budget presented by Finance Minister Nirmala Sitharaman.
WHERE DOES THE MONEY COME FROM TO FINANCE EXPENSES?
The government is targeting tax revenue growth of 12% to 26.32 trillion rupees.
For the year, the government is targeting an 11.4% growth in net tax revenue to 23.3 trillion rupees.
Gross market borrowing is estimated at 15.43 trillion rupees ($189 billion), while net borrowing is estimated at 11.81 trillion rupees.
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The net borrowing excludes 781 billion rupees of bonds given to states as compensation for a shortfall in the Goods and Services Tax, reducing repayments due next year.
New Delhi is also aiming to swap bonds worth 1 trillion rupees next year, having swapped bonds worth 1.03 trillion rupees this year.
The government plans to raise 510 billion rupees through the sale of stakes in various public companies.
The government has raised its spending target by 7.5% to Rs 45.030 billion for 2023/24.
The government will spend Rs 10 trillion on longer-term capital spending in 2023/24, extending a strategy adopted to revive growth in the aftermath of the COVID-19 pandemic.
The allocation is above the 7.5 trillion rupees budgeted for the current year. The year-over-year increase of 33% follows last year’s 35% jump.
The government has cut major subsidies by 28% to Rs 3.75 trillion for the next fiscal year.
The government will target a budget deficit of 5.9% of GDP for 2023/24, up from 6.4% this year. A Reuters poll had pegged the budget gap at 6% of GDP.
($1 = 81.8150 Indian rupees)
Compiled by Aftab Ahmed; Editing by Kim Coghill
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