What is Fiscal Deficit

Market borrowing surged 32.8% in FY24, RBI report says

Looks to ensure enough financial headroom amid global headwinds

CII also highlighted the announcement in the Union Budget 2024-25 to keep the fiscal deficit at levels that help reduce the debt-to-GDP ratio

In absolute terms, the fiscal deficit -- the gap between government's expenditure and revenue -- was at Rs 7,50,824 crore during April-October period

The revenue expenditure, excluding subsidies, will be 0.12 per cent of GDP, lower than the budget estimate

The liquidity in the banking system stood at a deficit of Rs 6,956 crore on Monday, according to the latest data from the Reserve Bank of India

There is a very high chance that the actual fiscal deficit target will undershoot even 4.9 per cent of GDP as there was a decline in government expenditure during the general elections

Ahluwalia said if household net savings continue to decrease and fiscal deficit reduction is neglected, it could lead to significant problems, including crowding out of private investments

The estimated revenue deficit stands at Rs 34,743 crore (2.12 per cent of the GSDP), while the fiscal deficit is estimated at Rs 68,743 crore (4.19 per cent of the GSDP)

Political parties routinely make pre-poll promises of subsidies and freebies, but the fiscal burden of such guarantees weighs heavily on state budgets once in power

Rising tax revenues and RBI dividend boost receipts

Fiscal consolidation measures such as managing contingent liabilities, improving fiscal transparency, and enhancing the fiscal credibility of SDLs needed to address states' financial challenges

Borrowings remain within prudent norms

Capital expenditures across 18 states declined by 6% year-on-year between April and August in FY25, totalling Rs 1.67 trillion, down from Rs 1.78 trillion during the same period the previous year

The fiscal deficit-the gap between expenditure and revenue-was 36 per cent of the budget estimates for the corresponding period last year

Net tax receipts for the period were 8.74 trillion rupees, or 34% of the annual target, compared with 8.04 trillion rupees for the same period last year, according to the data

May borrow around Rs 6.3 trillion during the period

Market participants said the banking regulator may conduct more VRR auctions to infuse liquidity if the weighted average overnight money market rates do not align with the repo rate

The UPS is seen to be different from OPS since it is funded every year and the burden does not fall on future governments.

The region is expected to clock a growth of 7% in FY25 but it's dependent on Central government grants