Finance Minister Nirmala Sitharaman, in her Budget speech on Saturday, February 1, said the fiscal deficit, which is the difference between the government expenditure and income, for 2025–26 is estimated at 4.4% of the gross domestic product (GDP). Sitharaman had earlier said the government aims to reach a 4.5% fiscal deficit in 2026–27.The Finance Minister said gross and net market borrowing is pegged at ₹14.82 lakh crore and ₹11.54 lakh crore, respectively, in FY26.The government’s gross borrowing for budget was ₹14.01 lakh crore in FY25. The government borrows from the market to fund its fiscal deficit. The borrowing number is keenly watched by the market, especially on the back of lower dividends from the RBI in FY26 compared to ₹2.11 lakh crore in FY25.
Net tax receipts are estimated at ₹28.37 lakh crore in FY26.The budgeted fiscal deficit for the current fiscal year (April 2024 to March 2025, or FY25), was estimated at 4.9% of the GDP, which is now revised to 4.8%.Earlier, Finance Minister Nirmala Sitharaman on Saturday (February 1) presented her eighth consecutive budget amid sloganeering from opposition.Sitharaman said the Budget aims to implement reforms across six domains – Taxation, Power, Urban Development, Mining, Financial Sector and Regulatory reforms.Presenting the 14th consecutive Budget under the Narendra Modi government since 2014, Sitharaman said, “Together we embark on journey to unlock our potential for greater prosperity.” She asserted that the Indian economy is fastest-growing among all developing economies.Click here for live updates
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