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What is Fiscal Deficit

Fiscal Deficit

About Fiscal Deficit

What is Fiscal Deficit

A country’s fiscal balance is measured by its government’s revenue vis-a-vis its expenditure in a given financial year. Fiscal deficit, the condition when the expenditure of the government exceeds its revenue in a year, is the difference between the two. Fiscal deficit is calculated both in absolute terms and as a percentage of the country’s gross domestic product (GDP).
 
The fiscal deficit of a country is calculated as a percentage of its GDP or simply as the total money spent by the government in excess of its income. In either case, the income figure includes only taxes and other revenues and
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Latest Updates on Fiscal Deficit

India-Pakistan tensions could strain fiscal deficit if conflict escalates

Economists say India's fiscal deficit may widen if tensions with Pakistan persist, although the broader economic impact is expected to be limited if conflict remains contained

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Updated On : 07 May 2025 | 10:58 PM IST

Defence spend amid Pak tensions may hit India's fiscal strength: Moody's

Moody's Ratings says India's economy remains resilient despite Pak tensions, but increased defence expenditure could weigh on fiscal strength and delay consolidation

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Updated On : 05 May 2025 | 8:03 PM IST

No question of fiscal deficit going out of control: FM Nirmala Sitharaman

Sitharaman's comment comes at a time when forecasting agencies have pared down their FY26 growth estimates for India amid growing global uncertainty

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Updated On : 21 Apr 2025 | 11:56 PM IST

China's fiscal revenue falls 1.1% in Jan-Mar 2025 amid ongoing tariff war

China's tax revenue fell 3.5% in the first quarter from the previous year, while non-tax revenue surged 8.8%, the ministry said

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Updated On : 18 Apr 2025 | 4:42 PM IST

India's Apr-Feb fiscal deficit at 85.8% of full-year target, shows data

In the annual budget in February, India revised lower its fiscal deficit target for the current financial year to 4.8% of GDP and aimed to further narrow it to 4.4% in 2025-26

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Updated On : 28 Mar 2025 | 4:26 PM IST

RBI increases state bond auction amount to Rs 52,120 cr from Rs 40,120 cr

In the previous auction, the cut-off yield on 10-year state bonds was set in the range of 7.18 per cent to 7.27 per cent

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Updated On : 17 Mar 2025 | 8:50 PM IST

TN Budget: Fiscal deficit at 3% of GSDP in FY26; Hosur to be new GCC hub

Finance minister Thangam Thennarasu said that the state's revenue for the financial year 2025-26 is estimated at Rs 3,31,569 crore, while expenditure is estimated at Rs 3,73,204 crore

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Updated On : 14 Mar 2025 | 11:58 PM IST

Govt seeks Parliament approval for Rs 51,000 crore extra cash outgo

Gross additional spending to be matched by savings of Rs 6.27 trillion

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Updated On : 10 Mar 2025 | 9:56 PM IST

Fiscal deficit touches 74.5% of full year target at end-Jan, shows CGA data

In actual terms, the fiscal deficit -- the gap between expenditure and revenue -- was Rs 11,69,542 crore during the April-January 2024-25 period

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Updated On : 28 Feb 2025 | 4:55 PM IST

Reducing fiscal deficit to around 3% of GDP difficult: Govt to IMF

The report further noted that both the IMF and the government saw a need for medium-term fiscal consolidation but considered targeting a more gradual pace of adjustment to be appropriate

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Updated On : 27 Feb 2025 | 11:28 PM IST

Union Budget balances fiscal and growth objectives, says RBI report

According to the report, the budget reaffirms the government's commitment to fiscal discipline while fostering inclusive, long-term economic growth in line with the vision of Viksit Bharat

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Updated On : 19 Feb 2025 | 11:40 PM IST

Debt-to-GDP over fiscal deficit: Will FM Sitharaman's strategy pay off?

Since the finance minister announced a glide path based on debt-to-GDP ratio to measure fiscal deficit, opinion has been divided on the move since it would also reflect on government borrowings

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Updated On : 13 Feb 2025 | 12:40 AM IST

Fiscal, monetary measures to boost consumption, pvt investment, says FM

On the monetary side, the Reserve Bank on Friday slashed the policy rate by 25 basis points, the first rate cut in five years to support growth

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Updated On : 08 Feb 2025 | 4:23 PM IST

Best of BS Opinion: How policy moves can trigger a cascading effect

Our editorials and columns look at the consequences of policy actions, and how they can have far-reaching impacts

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Updated On : 06 Feb 2025 | 6:15 AM IST

Prudent fiscal management likely to soften G-sec yields: DEA secretary Seth

The government has reduced its borrowings estimate for next financial year to Rs 11.54 trillion on net basis as it expects an improvement in tax collection

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Updated On : 05 Feb 2025 | 7:24 PM IST

Budget non-inflationary, focuses on fiscal prudence: Finance secy Pandey

The Secretary said the economy would reap a lot more benefits with monetary easing and keeping inflation under control

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Updated On : 04 Feb 2025 | 10:29 PM IST

Best of BS Opinion: Union Budget 2025 aims to clear multiple hurdles

From nuclear power generation to agri reforms, from a noisy middle class to central bank's moves on interest rates, the government must jump over many obstacles to achieve its objectives

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Updated On : 03 Feb 2025 | 6:15 AM IST

Budget 2025: Focused on fiscal discipline, growth, and tax relief

Overall, the government has taken a disciplined approach in this Budget, keeping long-term benefits in mind

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Updated On : 02 Feb 2025 | 4:26 PM IST

Budget ready reckoner: Mkt borrowings' share declines, Centre's capex up

Reduction in sovereign debt-to-GDP ratio requires a decline in fiscal deficit in proportion to GDP

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Updated On : 02 Feb 2025 | 12:37 AM IST

A pro-growth Union Budget 2025-26 marked by coherence and consistency

The Budget represents a continuation and an acceleration of the government's multi-pronged economic development strategy

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Updated On : 02 Feb 2025 | 12:20 AM IST