Many The development of critical social and economic infrastructure may be affected due to the concessions announced by states in their 2024-25 budget. This apprehension was expressed in an article by the Reserve Bank of India (RBI) on Tuesday. According to an article published in the December issue of the RBI Bulletin, the gross fiscal deficit as a percentage of the budget estimate for April-September, 2024-25 has declined for both the Center and states. This was mainly due to strong receipts, slowing revenue expenditure growth and decline in capital expenditure. According to the article, this gives them fiscal space to increase capital expenditure in the latter half of 2024-25. This will help support growth prospects in the medium term
Many states have come up with free schemes
The article further states that several states have announced concessions in their budgets for 2024-25. Several states, including Haryana, Punjab, Maharashtra and Jharkhand, have announced several concessions including free electricity for agriculture and domestic sector, free transport, allowances to unemployed youth and monetary assistance to women. It said the Center has recorded growth in both direct and indirect tax collections and this trend is expected to continue. RBI has clarified that the views expressed in the article are those of the authors and do not represent its views.
Economy recovering from the slowdown of the second quarter
The Indian economy is recovering from the slowdown seen in the second quarter of the current financial year ending in September, supported by strong festive activities and a sustained pickup in rural demand. This information has been given in an article on ‘State of the Economy’ published in the December Bulletin of the Reserve Bank of India. The article said that the global economy is showing resilience with stable growth and moderate inflation. According to it, “Important data (HFI) for the third quarter of 2024-25 show that the Indian economy is recovering from the slowdown seen in the second quarter, driven by strong festive activities and a sustained pickup in rural demand.”
(With inputs from PTI/Language)
Latest Business News