Will The BJP Be Able To Achieve A Fiscal Target Of 4.5% in Third Term?

Lok Sabha Elections 2024 results are out. People are looking for more details about the party going to be in power. The exit polls expectations were high from the BJP. However, we know that all the expectations broked apart from BJP after exit polls predict a 50-50 chance for NDA vs India Alliance. In the past ten years, the Modi government took the target to control the fiscal deficit to bring it to 4.5%. Will the weakening of Modi’s influence allow him to continue at the same pace?

Will The Weaker Modi government Be Able To Bring The Fiscal Deficit To 4.5%?

The Modi-led BJP has received only 240 seats in the Lok Sabha. However, the party expected 400+ seats with the slogan, Abhi Baar, 400 Paar. The party won only 240 seats showing the changing political scenarios in the country. The India Alliance has worked to get themselves up in the market. While Congress was able to double its seats won in 2024 compared to 2019. It ended up winning 99 seats. BJP’s target to be in the majority was not able to succeed. However, the BJP in alliance with the NDA is surely in the majority.

Modi will return for the third time in alliance with NDA as the Prime Minister of India. However, the share market and other economic aspects seem to be weekend. The reason behind it is no majority from the BJP. Several of the speculators mentions that the Modi government will be able to continue strong to reach its fiscal deficit target. It is a term used when a government of a country spends more than it earns. Thus, the country aims to take its fiscal deficit to 4.5% by FY2025-26.

The spending details will get more clarity by July 2024 in the announcement of the final budget for the year. The interim budget is yet to get the final touch in July. Whenever a country spends more than it earns, the loan on the nation increases. However, the government has to have control of the spending and earnings for the country’s development. Thus, BJP did not get the majority bar, but its alliance got it. The states like Madhya Pradesh and Gujarat have the most support for the BJP. It won the maximum seats from these states.

There might be several challenges in the way. However, the thing that matters the most is the country’s development. The state of UP was the biggest expectation for the BJP, which did not give the response as expected.