Sitharaman said the private final consumption expenditure is expected to grow by 7. 3 per cent in the current fiscal driven by a good rural demand.The private final consumption expenditure is estimated to be 61.8 per cent of the nominal GDP, which is the highest since 2002-03, she added.Sitharaman said the effective capital expenditure in FY’26 is Rs 15.48 lakh crore, which is 4.3 per cent of GDP.The Government is targeting a fiscal deficit of Rs 15.68 lakh crore, which is 4.4 per cent of the GDP in FY’26.Fiscal deficit is the difference between Government revenue and expenditure and the gap is met by market borrowings.”The government is using almost the entire borrowed resources for financing effective capital expenditure. So the borrowings are not going for revenue expenditure or committed expenditure, or any of those kinds.It’s going only for creating capital assets.””So, in effect, the government intends to use about 99 per cent of borrowed resources to finance effective capital expenditure in the upcoming year,” she said in the Lok Sabha.
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