Fiscal Deficit Down To 4.9%, To Further Lower To 4.5% By FY26

The Finance Minister announced that the Fiscal deficit for FY25 further scaled down to 4.9 from 5.1% in interim Budget. The net tax receipts are estimated at ₹25.83 lakh crore.

The gross and net market borrowings through dated securities are estimated at ₹14.01 lakh crore and the ₹11.63 lakh crore, respectively, lower than last year.

The government is committed to stay the course on fiscal consolidation, with deficit at below 4.5% of GDP in 2025-26, and with sustained reductions thereafter, the FM said.

She added that GST has reduced compliance burden and logistics costs for trade and industry and enhanced revenues. To multiply its benefits, we will strive to simplify and rationalize the tax structure and expand it to cover more goods, she said.

The Centre marginally cut the gross borrowing target from the markets in 2024-25 to Rs 14.01 lakh crore to finance its fiscal deficit of 4.9 percent of the GDP, Finance Minister Nirmala Sitharaman announced on July 23, in a speech presenting the full Budget for 2024-25.

This is Rs 1.4 lakh-crore lower compared to the estimate of Rs 15.43 lakh crore for FY24.

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