India’s fiscal deficit for the financial year 2024-25 (April–March) narrowed to 4.8% of gross domestic product (GDP), down from 5.6% in the previous year, according to official data released on Friday, May 30. The figure is in line with the government’s revised target set in the Union Budget for FY26.In absolute terms, the fiscal deficit stood at ₹15.77 lakh crore, slightly above the revised estimate of ₹15.70 lakh crore, amounting to 100.5% of the target.
Total government receipts for FY25 rose 10.4% year-on-year (YoY) to ₹30.78 lakh crore, although this was lower than the revised projection of ₹31.47 lakh crore.
On the expenditure side, total spending was reported at ₹46.56 lakh crore, which was also below the revised estimate of ₹47.17 lakh crore.Notably, capital expenditure—a key driver of infrastructure development—reached ₹10.52 lakh crore, exceeding the revised target of ₹10.18 lakh crore by 3.3%, reflecting the government’s continued focus on public investment.ALSO READ | Indian government plans to raise ₹8 lakh crore from market in first half of FY26Meanwhile, India’s economy expanded by 7.4% in the January–March 2025 quarter (Q4 FY25), according to data released by the National Statistics Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI). This marks a slowdown from the 8.4% growth recorded in the same period last year, but remains higher than economists’ expectations. A CNBC-TV18 poll had estimated Q4 GDP growth at 6.8%.
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