Fiscal deficit target for FY24 to be kept at 5.8-5.9% in Budget: Report

The fiscal deficit is expected to remain much larger than the 4-4.5 per cent of the GDP that was usual for decades

The Centre is likely to cut its 2023-24 (FY24) fiscal deficit in the range of 5.8-5.9 per cent of the GDP from 6.4 per cent in FY23, news agency Reuters reported on Wednesday. 

However, the deficit is expected to remain much larger than the 4-4.5 per cent of the GDP that was usual for decades. The officials aware of the matter told Reuters that the Centre is hoping to return to those historical levels by FY26. 

According to a report by PTI, economists at SBI expect the Budget to peg the fiscal deficit close to 6 per cent.

"The Budget