Budget 2019: Confusion over assumed GDP, says India Ratings' Devendra Pant

There is confusion over assumed GDP growth in FY20. While the Budget at a Glance (BAG) pegs FY20 nominal GDP growth at 12 per cent, the section on macro-economic framework puts it at 11 per cent. Moreover, FY19 GDP in BAG is different from the Central Statistical Office’s estimate.

FY19 provisional estimates for revenue are now available. It is perplexing that the Budget hasn’t used these numbers for FY20 estimates and relied on FY19 (RE) in the interim Budget. Gross tax revenues are budgeted to grow 9.5 per cent in FY20 based on FY19 (RE).