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Chief Minister for Budget 2023: Every time the budget is presented, everyone’s eyes are on taxes. But there are many other such decisions that have a direct impact on us and on your life. One of them is the fiscal deficit. Before you get to know this in detail, know that today Finance Minister Nirmala Sitharaman said that the fiscal deficit will be reduced to less than 4.5 percent by fiscal year 2025-26.
What became cheaper and what became expensive after the budget, find out here
What would the fiscal deficit have been?
The government presents its budget every year. But if you pay attention, every time the government announces spending more than its income. The fiscal deficit shows the difference between government revenues and expenditures. When the government spends more than it earns, it is called a fiscal deficit.
What is the impact of the increase in the fiscal deficit on the common man?
Every time the fiscal deficit starts to increase, the government starts giving government subsidies to reduce it. That is, the direct impact in the pocket of the common man begins. Apart from this, loans are starting to get expensive. Which turns out to be very detrimental to MSMEs. Due to the expensive loan, the businessman begins to reduce expenses. The effect of which can also be clearly seen in employment. On top of all this, the government also starts cutting money for the schemes.
What did FM promise?
He also said that the tax receipts for the upcoming fiscal year have been set at Rs 23.3 lakh crore in the budget. Apart from this, states will be allowed a fiscal deficit of up to 3.5 percent of gross domestic product (GDP). Introducing the General Budget for 2023-24 in Lok Sabha, Finance Minister Nirmala Sitharaman said that to finance the fiscal deficit in the upcoming fiscal year, net borrowing from the dated stock market is estimated at Rs 11.8 lakh. crore.
In the revised estimate for the 2022-23 fiscal year, the Minister of Finance set a target of 6.4 percent of the fiscal deficit. However, it has been reduced to 5.9 percent for the next financial year. For the current fiscal year, the government had kept it at 6.4 percent of GDP. The fiscal deficit for the current fiscal year is estimated at Rs 16,61,196 crore.