The Ministry of Finance is engaged in internal discussions to prepare the Interim Budget for 2024-25, with officials telling Business Today Television that the government is keeping the uncertain global environment on mind while formulating the budgetary estimates for the next fiscal year.
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The Ministry of Finance’s monthly economic review for the previous month pointed out that geopolitical circumstances, including recent developments in the Persian Gulf, the recent rout in US treasuries, and sustained tight monetary policy, could potentially impact the Indian economy.
“While India may not be directly impacted, we need to prudently manage our expenditures, given the unfavourable geopolitical sentiment,” the official said.
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On the possible impact of the conflict in Israel on India’s current macroeconomic stability, sources shared that the escalation of conflict could disrupt supply chains, influencing crude oil prices.
However, the government remains confident about reaching its budgetary targets for FY24 and achieving the 5.9 per cent fiscal deficit goal.
According to sources, the Ministry of Finance is currently engaged in discussions with various other ministries regarding nearly 100 different demands.
The pre-budget deliberations are anticipated to conclude in the second week of November, post which the government will prepare the Interim Budget.
