What is Fiscal Deficit

The Central government debt is projected to decline from 58.1 per cent of GDP in 2023-24 to 56.8 per cent in 2024-25

Total government expenditure for the eight months was 27.41 trillion rupees, or about 57% of the annual goal. The government spent 26.52 trillion rupees in the same period last year

Finance Minister Nirmala Sitharaman is schedule to present the Budget for 2025-26 in Parliament on February 1

The report said that several states have announced sops in their 2024-25 Budgets; such spending may divert resources away from critical social and economic infra development

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