Govt may stick to glide path, peg FY24 fiscal deficit at 5.8%
Govt may get some space in the absence of a free foodgrain scheme and lower commodity prices for fertilizers.
NEW DELHI : Despite spending pressures and an expected growth slowdown, the Union government may stick to its fiscal glide path and target a fiscal deficit of 5.7-5.8% of gross domestic product for FY24, an official aware of the matter said. Lower subsidy outgo and ending the free foodgrain scheme may help the government in this respect, as it aims to cut the deficit to 4.5% by FY26. However, a final decision on the FY24 deficit target will be taken at the highest levels closer to the budget.
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