Govt FY25 spends to be in sync with Budget estimates of ₹48.2 lakh cr

Govt may cut spending on PMGKAY

The government's total expenditure in the financial year 2024-25 is likely to be in line with the Budget estimates of ₹48.2 lakh crore, a senior official said on Thursday. The official added that the government may cut spending on the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) and other welfare schemes to keep the fiscal deficit under control.

Centre to sell stake in LIC, banks, and other PSUs

The government is also planning to sell its stake in Life Insurance Corporation of India (LIC), public sector banks, and other public sector units (PSUs) to raise funds. The official said that the government is aiming to raise ₹65,000 crore from disinvestment in the current financial year.

Disinvestment target may not be met

However, the official admitted that the government may not be able to meet its disinvestment target due to the current market conditions. The official said that the government is exploring other options to raise funds, such as issuing sovereign bonds.

Govt to borrow ₹15.4 lakh cr in H1FY23

The government is planning to borrow ₹15.4 lakh crore in the first half of the current financial year, the official said. The official added that the government will borrow ₹8.4 lakh crore in the second quarter of the current financial year.

Govt to reduce market borrowing in H2FY23

The government is planning to reduce its market borrowing in the second half of the current financial year, the official said. The official added that the government will borrow ₹7 lakh crore in the third quarter of the current financial year and ₹5.6 lakh crore in the fourth quarter.

Fiscal deficit may come down to 5.9% of GDP in FY23

The government is hoping that the fiscal deficit will come down to 5.9% of GDP in the current financial year, the official said. The official added that the government is taking steps to control expenditure and increase revenue.