Govt likely to consolidate fiscal deficit to 5.9% of GDP in FY24: Goldman

The government aims to shrink the gap to below 4.5% of GDP by 2025-26

Goldman Sachs Group Inc. expects India to trim its fiscal deficit aim by 50 basis points for the financial year starting April, as it balances spending priorities and fiscal prudence in the upcoming budget.
 

The government will consolidate its fiscal deficit to 5.9% of gross domestic product in the new fiscal year, helped by a reduction in food and fertilizer subsidies, Goldman economists including Andrew Tilton and Santanu Sengupta wrote in a report Tuesday.

The withdrawal of the free food plan will likely reduce the subsidy bill to 0.8% of GDP, while fertilizer subsidy is seen to return to the