Higher nominal GDP likely to help govt meet fiscal deficit target

The higher nominal gross domestic product (GDP) in FY23 than what was assumed in the Budget at the start of the current fiscal year will allow the government to spend about Rs 97,000 crore more than the Budget Estimate (BE) and still meet the fiscal deficit target of 6.44 per cent of the GDP, assuming constant revenues.

The leeway to the government was given by the first Advance Estimates, which pegged GDP at current prices at Rs 273 trillion for 2022-23 as against Rs 258 trillion assumed by the FY23 Budget. The latest nominal GDP number will be used to