Budget slow on fiscal consolidation, ambitious on revenue target: S&P

According to the monthly Asia-Pacific Credit Focus, the govt will also look to cap subsidy expenditure in the upcoming year, against a surprise rise in FY23 owing to surging fertilizer and food prices

The Union Budget 2023-24 has an ambitious revenue growth assumption but maintains a slow and steady pace of fiscal consolidation, S&P Global said on Tuesday.

“Government’s revenue receipts target for FY24, is a little bit ambitious as it is higher than the growth (experienced) in FY23 amid expected slowing of economic growth and cooling inflation,” Andrew Wood, Director, Sovereign & International Public Finance Ratings, S&P Global Ratings said.

Wood said that India’s fiscal metrics (interest payment, debt-to-GDP ratio) have been very stable over the past 15 years and are going to remain within bounds over the next few years based