Three Top Economists On The Likely Fiscal Deficit Numbers In The 2024-25 Budget

In Business Today TV's special series on Budget 2024-25, three leading economists—Madan Sabnavis, Chief Economist at Bank of Baroda; Sunil Sinha, Senior Director & Principal Economist at India Ratings & Research; and Suvodeep Rakshit, Chief Economist at Kotak Institutional Equities discuss their key expectations for the budget. Madan Sabnavis expects the fiscal deficit to slightly decrease from 5.1% to 5%. He foresees no change in capital expenditure and believes social spending will continue as promised during the election period. Sunil Sinha predicts the fiscal deficit will drop to 4.9% from 5.1% and expects nominal GDP to be higher than the interim budget's figures. He also doesn't anticipate major changes in overall expenditure. Suvodeep Rakshit estimates the fiscal deficit to GDP ratio at 5%, with a significant increase in capital expenditure, likely around 25% growth. He expects revenue expenditure to rise by about 6% and no changes in tax policies. Watch this excerpt for more insights.