Govt confident of meeting FY24 fiscal deficit target, says DEA secretary

Ajay Seth, the secretary of the department of economic affairs, expressed the government's confidence in achieving the fiscal deficit target of 5.9 per cent for the fiscal year 2024.

He also reiterated the commitment to reducing the fiscal deficit to 4.5 per cent of GDP by fiscal year 2026. Seth made these remarks during a national workshop on insights from the G20 infrastructure working group, where he highlighted the strong growth momentum observed in the Indian economy during the second quarter (July-September).

Anticipating robust growth in the upcoming quarter, Seth echoed the optimistic sentiments of Reserve Bank of India Governor Shaktikanta Das.

Das had previously suggested that the growth rate for July-September could be a positive surprise, considering early data points and indicators.

The first-quarter data revealed a significant expansion of the Indian economy by 7.8 per cent, attributed to increased government and private capital expenditure, as well as robust growth in the services sector. The real GDP at constant (2011-12) prices for the June quarter reached Rs 40.37 lakh crore, marking a 7.8 per cent growth from Rs 37.44 lakh crore the previous year.

The Ministry of Statistics and Programme Implementation reported that nominal GDP, or GDP at current prices, is estimated at Rs 70.67 lakh crore, indicating an 8 percent increase from Rs 65.42 lakh crore in the corresponding quarter of the previous year. All eyes are now on the release of India's second-quarter GDP data on November 30, to be released tomorrow.

Also Read: Gautam Adani back among top 20 billionaires after rally in group stocks