India pegs fiscal deficit at 5.9% of GDP, gross borrowing at 15.43 trillion rupees

MUMBAI, Feb 1 (Reuters) - India's federal government will target a budget deficit of 5.9% of GDP for 2023/24, Finance Minister Nirmala Sitharaman said in her budget speech.

The fiscal deficit for the fiscal year ending March 31, 2023 was at 6.4%, according to the revised estimates. A Reuters Poll had pegged the budget gap at 6% of GDP.

The government's budget gap, which hit a high of 9.5% of GDP in 2020/21 as the spread of COVID-19 infections brought the economy to a halt, has narrowed since but remains well above the medium-term goal of 4.5% of GDP by 2025/26.

The gross market borrowing is estimated at 15.43 trillion rupees ($189 billion), while net borrowing is seen at 11.8 trillion rupees.

For the year, the government is targeting an 11.4% growth in net tax revenue to 23.3 trillion rupees.

Expenditure is seen rising 7.4% over a year ago to 45 trillion rupees, with longer term capital spending budgeted to rise 33% to 10 trillion rupees. ($1 = 81.8100 Indian rupees)

(Reporting by Ira Dugal; Editing by Saumyadeb Chakrabarty)