Fiscal consolidation

Both Centre and states need to reduce deficit

Union Finance Minister Nirmala Sitharaman will present the first Budget of the third Narendra Modi government next week. There are expectations around issues such as tax rationalisation, increased capital expenditure, and efforts to generate employment. Although it is likely that this Budget will be closely aligned with the Interim Budget, stakeholders will expect a medium-term road map from the government. In terms of overall fiscal management, as things stand, after facing a shock during the pandemic, the central government is on a steady path of fiscal consolidation. The fiscal deficit for 2023-24 was 5.6 per cent of