The government is expected to meet its fiscal deficit target of 5.9% in fiscal year 2024, according to a statement by Goldman Sachs. The global investment bank also suggested that if spending remains low in the current quarter, the deficit may end up at 5.8% of GDP. Furthermore, Goldman Sachs predicts that the government could reduce its fiscal deficit target to 5.3% in the upcoming budget.

The announcement by Goldman Sachs is in line with the government’s commitment to fiscal consolidation. A lower fiscal deficit is seen as positive for the economy as it indicates better management of public finances and can lead to higher investor confidence.

However, achieving these targets will require careful management of government spending and revenue collection. The government will need to find a balance between reducing the fiscal deficit and ensuring adequate funding for key sectors such as healthcare, infrastructure, and social welfare.

The upcoming budget will be keenly watched by investors and economists as it will provide insights into the government’s fiscal roadmap for the next financial year. It is expected that the government will announce measures to boost economic growth, attract investments, and address the impact of the COVID-19 pandemic.

Overall, Goldman Sachs’ prediction of the government meeting its fiscal deficit target and potentially reducing it further reflects optimism about the Indian economy’s recovery and the government’s commitment to fiscal discipline. However, challenges remain, and the government will need to implement effective policies to achieve these targets while supporting economic growth and addressing the needs of the population.