Fiscal Deficit

Government think tank Niti Aayog on Wednesday urged state governments to adhere to fiscal deficit norms under the FRBM Act through disciplined expenditure management, broadening the GST base, and enhancing their own tax capacity. The Fiscal Responsibility and Budget Management (FRBM) Act aims to regulate the country's debt level by restricting fiscal and revenue deficits as a percentage of GDP. Niti Aayog's 2026 Fiscal Health Index (FHI) for 2023-24 suggests that states with widening revenue deficits should prioritise aligning revenue expenditure with sustainable revenue growth. Odisha, Goa, Jharkhand, Gujarat, Maharashtra Chhattisgarh, Telangana, Uttar Pradesh, Karnataka and Madhya Pradesh have emerged as India's top 10 fiscally-wise states, according to the latest fiscal health index for the financial year 2023-24. Bihar, Karnataka and Telangana showed a mild recovery, whereas Punjab, West Bengal and Kerala remained at the bottom of the index. In the FHI of 2025, which ranked st

A prolonged West Asia conflict could strain India's fiscal position through higher fertiliser subsidies, rising import costs and weaker revenue growth

The Commission appreciates the Union government's fiscal restraint during the pandemic and the subsequent reduction in deficits and debt following the sharp spike seen in the pandemic year

Finance Ministry seeks Parliament approval for Rs 2.01 trillion net additional FY26 spending through the second supplementary demand for grants, with allocations for subsidies and reserve funds

The fiscal deficit as a percentage of GDP for three financial years till 2024-25 has been revised upwards following the revision in base year for calculation of GDP, the government informed Parliament on Tuesday. As per the new GDP Series published on February 27, the fiscal deficit as a percentage of GDP works out to be 4.9 per cent for 2024-25, 5.7 per cent for 2023-24, and 6.7 per cent for 2022-23, Minister of State for Finance Pankaj Chaudhary said in a written reply in the Rajya Sabha. The fiscal deficit was earlier estimated at 4.8 per cent for FY'25, 5.63 per cent for FY'24 and 6.4 per cent for FY'23. In absolute term, fiscal deficit stood at Rs 15.74 lakh crore in FY'25, Rs 16.55 lakh crore in FY'24 and Rs 17.38 lakh crore in FY'23. On February 27, 2026, the government released the new series of Gross Domestic Product (GDP) estimates with 2022-23 as the base year, replacing the previous series with a base year of 201112. With the new 2022-23 base, the Nominal GDP or GDP at

Lower nominal GDP estimates have nudged up FY26 fiscal deficit and debt ratios, implying a steeper consolidation path even as new NSO GDP data revises sectoral weights

India's GDP growth for FY27 is seen at 7-7.4% under the new series, with risks tilted upward, as strong momentum, reforms and trade deals lift the outlook

The Centre estimates the fiscal deficit (the gap between expenditure and revenue) during 2025-26 at 4.4 per cent of GDP, or Rs 15.58 trillion

The 16th Finance Commission throws up a transition challenge for states facing strict fiscal limits

Ind-Ra expects states' fiscal deficit to widen to 3% of GDP in FY27 due to higher revenue spending, with SASCI-linked borrowing potentially lifting it to 3.5% of GDP

ADB-PwC study urges India to phase out universal subsidies, tighten Aadhaar-linked targeting and audits, and improve fiscal efficiency without hurting stability

Uttar Pradesh's ₹9.12 trillion FY27 Budget ramps up infrastructure and capex, keeps the fiscal deficit below 3%, and pitches the state as India's next growth engine

It is useful to remember that the miracle economies to our East, the so-called Asian Tigers, sustained high growth for decades by following prudent fiscal policies

India's fiscal discipline has improved, but high debt, future spending pressures and bond-market constraints make deeper consolidation increasingly difficult

Centre must encourage prudent spending by state governments to improve general-government debt levels

India weathered the Trump tariff shock better than expected, but high public debt and slower fiscal consolidation pose risks even as trade deals lift growth and investor sentiment

On Agri Stack, Expenditure Secy V Vualnam says it's progressing well; using IT, farmers will be able to choose exact fertiliser quantities needed, reducing crowding at fertiliser outlets

To hold the fiscal deficit at 4.4% of GDP, the Centre trims spending and shifts to a debt-anchored framework for greater policy flexibility amid global risks

The Budget has largely eschewed political populism, even as several states are to go for Assembly elections in the coming months

the 16th Finance Commission kept tax devolution at 41%, added GDP contribution as a new criterion, dropped revenue deficit grants, and pushed states towards stronger fiscal discipline