New Delhi, In a recent statement, Ajay Seth, the secretary of the department of economic affairs at India’s Ministry of Finance, expressed the government’s confidence in achieving the fiscal deficit target of 5.9% for FY24. The government remains committed to further reducing the fiscal deficit to 4.5% of GDP by FY26.

The government anticipates that higher non-tax revenues, including dividends from the Reserve Bank of India (RBI) and state-run banks, will offset any potential revenue shortfall from disinvestment.

Ajay Seth shared this information during a national workshop on learnings from the G20 infrastructure working group, emphasizing the positive growth momentum witnessed in the Indian economy during Q2 (July-September). Official GDP data for Q2 is scheduled for release on November 30.

Despite the robust 7.8% expansion in the first quarter of the fiscal year, experts predict a moderate growth rate in Q2. Barclays estimates India’s GDP to expand by 6.8% year-on-year during this period.

The government’s divestment target of ₹51,000 crore for the current fiscal year may face challenges, as reported earlier. However, the government remains optimistic about maintaining fiscal discipline through alternative revenue sources.

As the government navigates economic dynamics, its commitment to fiscal responsibility remains a focal point, shaping India’s financial landscape.