India’s fiscal deficit may climb to 6% of the gross domestic product, breaching the 5.9% target, for the financial year 2023-’24, said rating agency India Ratings and Research..

• The target may be breached because of the possibility of revenue spending exceeding the Budget estimate by about Rs 2 lakh crore, the agency said.
• The projection contradicts the Centre’s assertion made earlier this month that it is likely to achieve its fiscal deficit target of 5.9% of the gross domestic product.
• On December 19, Parliament had approved a net additional spending of Rs 58,378 crore for the current financial year.
• This had increased the government’s total spending commitment for 2023-’24 to Rs 45.6 lakh crore. This includes about Rs 35.6 lakh crore of revenue expenditure and Rs 10.1 lakh crore of capital expenditure.