Budget 2024-25 likely to retain FY25 fiscal deficit target of 5.1%

Record RBI dividend may guide likely focus on capex, special package

Union Finance Minister Nirmala Sitharaman could stick to the fiscal deficit target of 5.1 per cent of gross domestic product (GDP) for 2024-25 (FY25), same as the Interim Budget, when she presents the full Budget in the middle of next month, according to three officials who are part of the policymaking team involved in the initial discussions of the Budget-making exercise. 

This is amid the considerations of the coalition government that assumed power at the Centre this month, and a likely thrust on higher capital expenditure (capex). There are also expectations of special financial packages from coalition partners