Fiscal prudence through disclosure: A key Budget move that went unnoticed

Statement 27-A, a voluntary disclosure of state-owned entities' borrowings, introduced in the Budget for 2024-25, enhances fiscal transparency and signals prudent fiscal management

A new and significant disclosure made by Finance Minister Nirmala Sitharaman in her Budget for 2024-25, presented on July 23 and approved by Parliament on August 8, has largely gone unnoticed. This disclosure is contained in Statement No 27-A in the expenditure document of the Budget.

Don’t confuse it with Statement No 27 in the same document, which lists the schemes and amounts financed through bonds fully serviced by the Union government and through loans from the National Small Savings Fund (NSSF), which have to be repaid by the exchequer. However, prudent fiscal management in the last couple