The Union Budget has pegged India’s Nominal GDP at 10.5% within the monetary 12 months 2023-24. Nominal GDP contains modifications in costs because of inflation and assumes significance within the finances as different numbers are calculated on this projection.

“Uncertainties plague the global economics are likely to continue in the near future. Therefore, efficient management of the domestic economy, especially macroeconomic fundamentals, amid the global exogenous shocks, requires dynamic and resilient fiscal policy responses. The nominal GDP in the FY2023-24 is projected to grow by 10.5 per cent over the Advance Estimates of FY 2022-23,” the Budget paperwork mentioned.

,Growth in FY 2023-24 shall be supported by stable home demand and a pickup in capital funding. The present development trajectory shall be supported by a number of structural modifications like IBC and GST which have enhanced the effectivity and transparency of the economic system and ensured monetary self-discipline and higher compliance. More importantly, robust steadiness sheets within the company and monetary sectors present a stable underpinning to development, in contrast to within the pre-pandemic years of FY 2018-19 and FY2019-20,” the documents further said.

Near-time downside risks to stability and growth are seen emanating from global inflationary pressures, tightening global financial conditions, prolonged supply chain disruptions, and the global trade slowdown.

Tax collection in 2023-24 is anticipated to be in line with the growth of nominal GDP. The tax revenue is projected at Rs 23.31 lakh crore, which is around 11.7% more than the revised estimate of Rs 20.87 lakh crore for 2022-23.

The economic survey has pegged real GDP growth at 6-6.8% in 2023-24. As per the government’s first advance growth estimates, real GDP and nominal GDP are projected to grow by 7% and 15.4% respectively, in 2022-23.