India’s fiscal deficit for FY25 got here in at 4.8% of GDP, narrowly beating expectations and matching the revised estimate set by the Finance Ministry. Authorities accounts launched on Could 30 present that the deficit reached Rs 15.77 lakh crore — 100.5% of the revised annual goal — marking a sharper drawdown in comparison with 95.4% in the identical interval final yr.
Complete authorities expenditure stood at Rs 46.56 lakh crore, accounting for 98.7% of this fiscal yr’s revised funds goal. On the income facet, receipts totaled Rs 30.36 lakh crore, with tax collections at Rs 24.99 lakh crore and non-tax income at Rs 5.38 lakh crore.
Tax income got here in at 97.7% of the revised estimate, whereas non-tax income barely exceeded expectations at 101.2%. Nonetheless, each fell in need of final yr’s efficiency, when tax and non-tax collections hit 100.1% and 106.9% of their respective funds forecasts.
Finance Minister Nirmala Sitharaman, in her Price range announcement earlier this yr, revised the fiscal deficit goal to 4.8% from the preliminary 4.9%, a transfer supported by restrained capital spending and a higher-than-expected dividend from the central financial institution.
Sticking to its fiscal consolidation path, the federal government has set a deficit goal of 4.4% for FY26 — signaling its intent to deliver the hole beneath 4.5% by the next yr. This dedication comes because the administration weighs coverage strikes, together with tax cuts and spending boosts, to counter a projected financial slowdown.
