Budget 2024: Government Retains Estimated GDP At 10.5%

The Union Budget was presented by the country's finance minister, Nirmala Sitharaman, on July 23. Amongst the key elements, the government has retained its nominal GDP growth estimations for 2024–25 at 10.5 per cent. The government estimates for 2023-24 also stood at 10.5 per cent.

Nominal GDP Figures Retained

Here, the nominal GDP is a measure of how much is spent on output. Unlike real GDP, the figures in nominal GDP are not adjusted for the inflation that comes to pass in a fiscal year.

This comes weeks after the RBI's annual report, which indicated the country would grow at a rate of 7 per cent. This was followed by many rating agencies increasing their estimates for the fiscal year.

RBI's annual report indicated the country would grow at a rate of 7 per cent

However, the Economic Survey that was released a day before the budget suggested a different story. according to the survey, the growth rate might slowdown. This, as the survey pegged the growth rate between 6.5 per cent and 7 per cent.

The revenue deficit target, however, has come down. The revenue deficit target for 2024–25 has been set at 1.8 per cent of the GDP.

The revenue deficit target for 2023-24 stood at 2.9 per cent of the GDP. This inturn is lower than 2022-23 target of 4.1 per cent. Union Budget 2024 As 'Holistic' And 'Historic': Chhattisgarh CM Vishnu Deo Sai Highlights Key Allocations

The revenue deficit target for 2023-24 stood at 2.9 per cent of the GDP. This inturn is lower than 2022-23 target of 4.1 per cent.

Estimated Expenditure Rises

Meanwhile, the government estimates its receipts (other than borrowing) for 2024-25 to be Rs 32,07,200 crore. This is 15 per cent higher than the actual expenditure in the previous fiscal year.

In 2023–24, the estimated receipts other than borrowing stood at Rs 27,16,281 crore. Union Budget 2024: Mixed Response From Indore's Youth

In 2023–24, the estimated receipts other than borrowing stood at Rs 27,16,281 crore, marking an increase of 18.07 per cent in estimated receipts compared to last fiscal year.

When it comes to the estimated expenditure, that facet has also seen a rise compared to last fiscal year. The estimated expenditure for 2024–25 has been pegged at Rs 48,20,512 crore.

This is greater than the estimate of 2023–24, when the estimated expenditure stood at Rs 45,03,097 crore, marking a 7.04 per cent increase in numbers.