InvestorQ : What could be the government’s fiscal deficit target for FY23?
Anjali Desai made post

What could be the government’s fiscal deficit target for FY23?

Answer
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1 year ago
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The fiscal deficit for the upcoming financial year 2022-23 could be in the range of 6-6.5% while the gross borrowings of the government could be at Rs 12 lakh crore according to consensus estimates from industry watchers.

The FY22 deficit has been pegged at Rs 15.06 lakh crore. Robust direct and indirect tax collections are expected to give enough headroom to the Centre to lower the fiscal deficit target for FY23. Recent data furnished by the Controller General of Accounts (CGA) showed that the fiscal deficit -- the difference between revenue and expenditure -- for the April-November 2021-22 period stood at Rs 695,614 crore or 46.2% of the Budget estimates (BE).

Another factor aiding the FY23 fiscal consolidation is a reasonable likelihood that the process of the IPO for LIC will get completed in the next fiscal year, substantially augmenting the disinvestment receipts.
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