Reading the Union Budget

The annual union budget is as much a political document as a financial one. Here is how to read past the headlines.

1. BE vs RE vs Actuals

Never compare this year's Budget Estimate (BE) with last year's BE. Always compare with the Revised Estimate (RE) to see actual spending trends. Often, allocations are slashed silently at the RE stage.

2. The Denominator Trick

Deficit numbers look better if you assume a highly optimistic nominal GDP growth rate. Check the nominal GDP assumption in the macro-economic framework statement.

Use our Fiscal Deficit Tracker to model this.