Union Budget 2022-23: Fiscal deficit target set at 6.4% of GDP for FY23, govt pegs market borrowing of Rs11,58,719cr

1 Feb 2022 , 03:51 PM

During Union Budget 2022 announcement on Tuesday, Finance Minister Nirmala Sitharaman announced the government’s target of fiscal deficit for FY22. The Centre pegs fiscal deficit for 2022-23 at 6.4% of GDP, which is consistent with the broad path of fiscal consolidation announced by me last year to reach a fiscal deficit level below 4.5% by 2025-26.

Also, the Revised Fiscal Deficit in the current year is estimated at 6.9% of GDP as against 6.8% projected in the Budget Estimates.

As per the FM, while setting the fiscal deficit level in 2022-23, she has been conscious of the need to nurture growth, through public investment, to become stronger and sustainable.

The Fiscal Deficit of the Government for 2022-23 is estimated to be Rs16, 61,196 crore.  The Revised Estimates for 2021-22 indicate a Fiscal Deficit of Rs15, 91,089 crore as against the Budget Estimates of Rs15, 06,812 crore.

FM announced the outlay for capital expenditure in the Union Budget is once again being stepped up sharply by 35.4% from Rs5.54 lakh crore in the current year to Rs7.50 lakh crore in 2022-23. This has increased to more than 2.2 times the expenditure of 2019-20. This outlay in 2022-23 will be 2.9% of GDP.

The total Market Borrowings of the government for 2022-23 are estimated to stand at Rs11,58,719 crore. The Revised Estimates for the same for 2021-22 are Rs8, 75,771 crore as against the Budget Estimates of Rs9, 67,708 crore.