The government has further trimmed its fiscal deficit target for FY25 to 4.9% of the Gross Domestic Product.This target aligns with the aspiration of beating the fiscal deficit target of 4.5% of GDP by FY26.
During the interim budget 2024, the Finance Minister had set the fiscal deficit target for FY25 at 5.1%.
Centre received surplus of RBI dividend worth Rs 2.11 Trillion Crore, that has aided the fiscal pressure.
For the year 2024-25, the total receipts, excluding borrowings, and the total expenditure are estimated at Rs 32.07 lakh crore and Rs 48.21 lakh crore, respectively.
Net tax receipts are projected to be Rs 25.83 lakh crore, with the fiscal deficit estimated at 4.9% of GDP.
The gross and net market borrowings through dated securities during 2024-25 are estimated at Rs 14.01 lakh crore and Rs 11.63 lakh crore, respectively, both lower than in 2023-24.“The fiscal consolidation path announced by me in 2021 has served our economy very well, and we aim to reach a deficit below 4.5 per cent next year,” reiterated Sitharaman while announcing the budget.
From 2026-27 onwards, our endeavour will be to keep the fiscal deficit each year such that the Central Government debt will be on a declining path as percentage of GDP, she added.
