Budget 2023-24: Centre to target higher capex but lower fiscal deficit

Budget 2023-24: The Centre is expected to peg the fiscal deficit target for FY24 below 6 per cent, and the capex is likely to jump 20-30 per cent

In the Budget 2023-24, the Centre is most likely to target a higher capital expenditure (capex) projection but a lower fiscal deficit on the back of healthy revenue, experts told Business Standard. This could be achieved mainly due to lower subsidies and buoyant tax collections.

"It is expected that the current fiscal deficit will be achieved at 6.4 per cent, owing to many factors including improved tax collections and a higher nominal gross domestic product (GDP) growth. With increased inflation, improved GDP and improved tax collections, a correction in the fiscal position are expected in 2023-24 (FY24) with the fiscal