New Delhi: The government will take advantage of a large income collection to fund the welfare program instead of trying to defeat the target of fiscal deficit or lower loans, two government sources told Reuters.
The country is set to surpass income collection targets 2020-21 RS 15.45 lakh crore ($ 207.77 billion), the first beats in four years, but most of the additional cash will go to rural work programs and provide free cereal for people poor.
The government also tends to lose Rs 55,000 Crore to Rs 60,000 Crore in additional income after cutting fuel tax this week to capture the escape prices.
“Even after cutting fuel tax we must be able to exceed the tax collection target for this year but will use funds for rural and subsidized work programs,” said one of the officials, both of which refused to be identified talking about the numbers market.
“Fiscal deficit and loans will be at the budget estimate rate.” The Ministry of Finance declined to comment.
Before deducting fuel tax, many economists have predicted India better than the fiscal deficit target of 6.8% by 30-50 basis points for the year ended March 31.
Market participants also expect the government to review loans budgeted at Rs 12,055 lakh.
Crore Before starting a discussion about the next budget that will be presented in 1.
February 1.
Administration of Prime Minister Narendra Modi plans to increase rural employment efforts to RS 30,000 Crore, the second official said, has used the 73,000 RS 73,000 crore allocated.
for the current fiscal year.
The government must also provide each additional 50,000 crore rs for free food drives and incentive programs for exporters, officials said.
The government has also approved the extra RS 40,000 Crore in fertilizer subsidies.