Fiscal deficit target steers budgetary strategy to reduce deficits and spur growth amid external and domestic risks.
Fiscal deficit targeting is central to the Budget's macro fiscal strategy, with staged reductions in the budget shortfall planned to restore fiscal discipline after low growth, weak industrial performance, constrained tax buoyancy and large subsidies. The Budget recognises external risks from oil price volatility and an uncertain monsoon and identifies undisclosed domestic funds as a challenge. To meet the consolidation path, the Government signals corrective fiscal measures and growth oriented interventions while containing expenditure pressures through subsidy restraint and strengthened revenue measures.