India’s fiscal deficit is seen at 4.4% of the gross domestic product in financial year 2025-26 under the revised estimates, Finance Minister Nirmala Sitharaman said in her Budget speech on Sunday.
For the next fiscal year, which is FY27, the fiscal deficit is projected at 4.3% of the GDP, she added.
The declining fiscal deficit fulfils the commitment made by the government in FY22 to bring down the number below 4.5% of the GDP.
The revised estimates of expenditure in FY26 was Rs 49.6 lakh crore, as per the finance minister. The FY27 expenditure was estimated to be at Rs 53.5 lakh crore. The net market borrowing for the same period (FY27) from dated securities was gauged at Rs 11.7 lakh crore.
Gross market borrowing was seen at Rs 17.2 lakh crore. The net tax receipts was evaluated at Rs 28.7 lakh crore in FY27. The capital expenditure in FY26 was estimated at Rs 11 lakh crore. The non-debt receipts are approximated at Rs 36.5 lakh crore in FY27.
India’s fiscal deficit for the April to December period had widened to Rs 8.56 lakh crore, or 54.5% of the annual target, as per the data released by the Controller General of Accounts on Jan. 30.
This was lower in comparison to the first nine months of the last fiscal year, when the deficit stood at Rs 9.1 lakh crore, or 56.7% of the yearly target. Net tax collections remained strong, with the cumulative mop-up reaching Rs 19.39 lakh crore, or 68.3%, of the yearly target. In the first eight months, the tax mop up had reached 49.1%.
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