Budget FY 2024-25: Fiscal consolidation will be driven by moderation in capital growth

BY A STAFF REPORTER:  Union Finance Minister Nirmala Sitharaman expects the fiscal deficit to come down to 5.5 per cent of GDP in FY25.  Under that leadership, CapEx growth will reach 15 percent. According to him, the growth rate of revenue expenditure in FY25 is expected to slow down to 2.5 per cent from an estimated 36 per cent in FY24.

In addition, the brokerage firm expects subsidies to be substantially lower in FY25 compared to FY24.