Finance ministry confident of keeping FY23 fiscal deficit in check

Robust tax mop-up, savings through SNA dashboard bode well for balance sheet, say officials

Policymakers at the Union finance ministry are confident of containing fiscal deficit in the ongoing FY23 at or close to the targeted 6.4 per cent of nominal gross domestic product (GDP), notwithstanding the greater food and fertiliser subsidy burden.

According to senior ministry officials, there are three factors behind such confidence: First, healthy direct and indirect tax collections; second, expansion in nominal or inflation-adjusted GDP; third, substantial expenditure savings expected via the Single Nodal Agency (SNA) dashboard.

“This year, we are expecting to save as much as Rs 40,000-50,000 crore through the SNA dashboard,” said a senior official, adding that