New Delhi, Feb 28: India's fiscal deficit stood at 74.5% of the annual target by the end of January 2025, as per data released by the Controller General of Accounts (CGA). This marks a significant increase compared to the 63.6% recorded in the same period last year.
In absolute terms, the fiscal deficit—the gap between government expenditure and revenue—amounted to ₹11,69,542 crore during April-January 2024-25.
Revenue and Expenditure Snapshot
- Net tax revenue stood at ₹19.03 lakh crore, covering 74.4% of the Revised Estimates (RE) for 2024-25. In contrast, it was 80.9% of the RE in the corresponding period of the previous financial year.
- Total government expenditure reached ₹35.7 lakh crore, accounting for 75.7% of the RE for 2024-25, slightly higher than 74.7% recorded in the same period last year.
Fiscal Deficit Projections
In the Union Budget 2024-25, the government has projected a fiscal deficit of 4.8% of GDP, revised downward from the previous estimate of 4.9%. For 2025-26, the fiscal deficit is expected to decline further to 4.4% of GDP.In absolute terms, the fiscal deficit for the full financial year ending March 2025 is estimated at ₹15.69 lakh crore.
The fiscal deficit serves as a key indicator of the government’s borrowing needs, reflecting the balance between revenue generation and expenditure. With the current trend, the Centre is closely monitoring fiscal consolidation measures to meet its financial targets for the year.
Last updated by a enewsx: