India On Track To Meet Fiscal Deficit Target Of 5.9 Per Cent In FY24, Says MoS Finance

Union Minister of State for Finance Minister Bhagwat Karad said on Monday that the Indian government is on track to meet its fiscal deficit target of 5.9 per cent of the gross domestic product (GDP) for the financial year 2023-24.

During the initial seven months of the financial year ending on 31 March 2024, India's fiscal deficit reached Rs 8.04 lakh crore ($96.86 billion), representing 45 per cent of the annual estimate, as per last month's government data.

However, the government has collected only Rs 10,050 crore from selling stakes in government-run firms as of 13 December, against its full-year target of Rs 51,000 crore, Karad told lawmakers, reports Economic Times.

"It is difficult to anticipate the quantum of actual proceeds from divestment during the current financial year 2023-24," because stake sales depend on factors including market conditions and investor appetite, Karad said.

Reuters reported last month that the Indian government is likely to miss its divestment target for the fifth consecutive year and may find it hard to secure even half of the projected revenue from the proposed sales of public sector enterprises this year.