Page 2 - Fiscal Deficit

Explained: What is fiscal deficit and what it means for economic stability

As of January 2025, India's fiscal deficit for FY25 is projected at 4.9 per cent of GDP, amounting to approximately Rs 16.1 trillion

Govt may forecast stronger growth next FY while sticking to fiscal targets

It is likely to forecast nominal economic growth of 10.3 per cent-10.5 per cent. That's higher than the forecast of 9.7 per cent for the current year

FY26 profit growth hinges on revenue trajectory: UTI AMC CIO Subramaniam

There may not be any major changes in direct taxation, given that simplification has already been carried out in recent years

Govt's fiscal deficit target in reach despite lower GDP estimate

The Budget had assumed nominal GDP to grow 10.5 per cent for FY25

Next steps in fiscal management: Road map needed for debt, deficit targets

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

April-Nov fiscal deficit at 52.5% of full-year target, shows govt data

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

Govt aims to bring down fiscal deficit to 4.5% in FY26: Finmin report

The government will continue its focus on improving quality spending, strengthening the social security net and bring down the fiscal deficit to 4.5 per cent of the GDP in FY26, a finance ministry document said. Finance Minister Nirmala Sitharaman is schedule to present the Budget for 2025-26 in Parliament on February 1. The Union government is committed to pursuing the glide path of fiscal consolidation as announced in the Budget for FY 2021-22 and to attain a level of fiscal deficit lower than 4.5 per cent of GDP by FY 2025-26, according to finance ministry statements on the half yearly review of the trends in receipts and expenditure and deviation in meeting the obligations of the government under the Fiscal Responsibility and Budget Management Act, 2003. The statements were tabled in the Lok Sabha last week. "The thrust will be on improving the quality of public spending, while at the same time, strengthening the social security net for the poor and needy. This approach would h

Govt aims to bring down fiscal deficit to 4.5% in FY26: Finmin report

The government will continue its focus on improving quality spending, strengthening the social security net and bring down the fiscal deficit to 4.5 per cent of the GDP in FY26, a finance ministry document said. Finance Minister Nirmala Sitharaman is schedule to present the Budget for 2025-26 in Parliament on February 1. The Union government is committed to pursuing the glide path of fiscal consolidation as announced in the Budget for FY 2021-22 and to attain a level of fiscal deficit lower than 4.5 per cent of GDP by FY 2025-26, according to finance ministry statements on the half yearly review of the trends in receipts and expenditure and deviation in meeting the obligations of the government under the Fiscal Responsibility and Budget Management Act, 2003. The statements were tabled in the Lok Sabha last week. "The thrust will be on improving the quality of public spending, while at the same time, strengthening the social security net for the poor and needy. This approach would h

States' sops may divert resources away from infra development: RBI article

Sops announced by several states in their 2024-25 Budgets may divert resources away from critical social and economic infrastructure development, an RBI article said on Tuesday. The gross fiscal deficit as per cent of budget estimate moderated in April-September 2024-25 over H1:2023-24 in case of both Centre and states, primarily on account of robust receipts, deceleration in their revenue expenditure growth and decline in capital expenditure, the article published in December RBI Bulletin said. This provides fiscal room to them to boost capex in the latter half of 2024-25 which would aid in sustaining the post pandemic gains in expenditure quality and support medium-term growth prospects. However, several states have announced sops in their 2024-25 Budgets; such spending may divert resources away from critical social and economic infrastructure development, it said. Many states, including Haryana, Punjab, Maharashtra, and Jharkhand have announced sops including free electricity to

State govt fiscal situation improves; sops may crowd out resources

Market borrowing surged 32.8% in FY24, RBI report says

Govt likely to target FY26 fiscal deficit at 4.4% of GDP to support growth

Looks to ensure enough financial headroom amid global headwinds

CII urges govt to stick to fiscal deficit target of 4.9% of GDP for 2024-25

Industry body CII has suggested the government to stick to the fiscal deficit target of 4.9 per cent of GDP for 2024-25 and 4.5 per cent for 2025-26, cautioning that "overly aggressive targets" beyond these could adversely affect India's economic growth. "India has been growing rapidly amidst a slowing global economy. Prudent fiscal management for macroeconomic stability has been pivotal to this growth," said Chandrajit Banerjee, Director General, CII, elaborating on suggestions for the forthcoming Union Budget. 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 preparation for this, the forthcoming budget could lay out a glide path to bring the central government's debt to below 50 per cent of GDP in the medium term (by 2030-31), and below 40 per cent of GDP in the long term, CII has suggested. Such an explicit target will have a positive impact on India's sovereign credit rating and ...

Trade gap, FPI outflows push banking liquidity into deficit after 2 months

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

Fiscal deficit at 46.5% of full-year target at Oct-end, shows govt data

The Centre's fiscal deficit at the end of the first seven months of financial year 2024-25 touched 46.5 per cent of the full-year target, government data showed on Friday. 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, according to data released by the Controller General of Accounts (CGA). The deficit stood at 45 per cent of the Budget Estimates (BE) in the corresponding period of 2023-24. In the Union Budget, the government projected to bring down the fiscal deficit to 4.9 per cent of gross domestic product (GDP) in the current 2024-25 financial year. The deficit was 5.6 per cent of the GDP in 2023-24. In absolute terms, the government aims to contain the fiscal deficit at Rs 16,13,312 crore during the current fiscal. The revenue-expenditure data of the Union government for the first seven months of 2024-25 showed that the net tax revenue was about Rs 13 lakh crore or 50.5 per

Fiscal deficit likely to be at 4.75% in FY25; capex at Rs 62K cr: IndRa

The government will be able to register the fiscal deficit at 4.75 per cent in FY25, 0.19 per cent lower than the budget aim, by reigning in expenditure, domestic rating agency India Ratings and Research said on Wednesday. The revenue expenditure, excluding subsidies, will be 0.12 per cent of GDP, lower than the budget estimate, the rating agency added. Its chief economist and head of public finance Devendra Kumar Pant said the government capital expenditure will come out to be Rs 62,000 crore lower than the estimate of Rs 11.11 lakh crore. Pant was quick to add that the government capex will still be 10.6 per cent higher than the year-ago period. The government was initially envisaging a 17.6 per cent growth in the key number. Even as there is a dip in the government capital expenditure projected, the capex to GDP in FY25 at 3.21 per cent is estimated to be at a two-decade high, the agency said. "The FY25 capex growth has been impacted by the general elections in May 2024, and ca

Impacting growth, liquidity management: Shifting sands of fiscal policy

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

No commitment to lowering fiscal deficit, says Montek Singh Ahluwalia

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

Andhra Pradesh govt presents Rs 2.9 trn budget; see all major allocations

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)

Fiscal burden of subsidies triggers political debate, rethink on freebies

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

Centre's fiscal deficit at 29% of FY25 target; capex challenges loom

Rising tax revenues and RBI dividend boost receipts