Has the Government Successfully Maintained the Fiscal Deficit at 4.8% of GDP for FY25?
Click to start listening
Synopsis
The government has triumphantly met its fiscal deficit goal for FY25, setting it at an impressive 4.8% of GDP. Learn how revenue collection and strategic investments are driving economic stability and growth.
Key Takeaways
- The government has met its FY25 fiscal deficit target of 4.8% of GDP.
- Central government revenues reached Rs 30.36 lakh crore.
- Capital expenditure increased to Rs 10.52 lakh crore, focusing on infrastructure development.
- The RBI's dividend payout of Rs 2.69 lakh crore supports fiscal stability.
- Reducing the fiscal deficit is crucial for economic growth.
New Delhi, May 30 (NationPress) The government has effectively achieved its fiscal deficit goal for the financial year 2024-25, set at 4.8 percent of the gross domestic product (GDP), according to the revised budget estimates released by the Controller General of Accounts on Friday.
As per the data from the CGA, the Central government garnered Rs 30.36 lakh crore through both tax and non-tax revenues, which amounts to 98.3 percent of the revised Budget Estimates (RE).
The expenditure by the Central government during 2024-25 was Rs 46.56 lakh crore, or 98.7 percent of the RE.
Investment in capital expenditure for developing physical infrastructure, including ports, highways, and railways, reached Rs 10.52 lakh crore, an increase from Rs 9.49 lakh crore the previous year. This underscores the government’s commitment to large-scale projects aimed at boosting growth and generating employment.
The fiscal deficit for 2023-24 stood at 5.63 percent of GDP. Finance Minister Nirmala Sitharaman has outlined a strategy to reduce the fiscal deficit to 4.4 percent for 2025-26.
A declining fiscal deficit signifies the strengthening of the economy's fundamentals, facilitating growth while maintaining price stability. This results in reduced government borrowing, thereby allowing more funds to flow into the banking sector for lending to businesses and consumers, ultimately driving higher economic growth.
In another significant development, the Reserve Bank of India (RBI) on Friday announced its highest-ever dividend of Rs 2.69 lakh crore to the Narendra Modi government.
This dividend represents a remarkable 27.4 percent increase compared to the Rs 2.1 lakh crore recorded in the previous year.
This unprecedented dividend will aid in controlling the fiscal deficit while enabling the Finance Ministry to sustain its spending on major infrastructure initiatives and social welfare programs to assist the underprivileged in 2025-26.
Point of View
I see this achievement as a testament to the government's commitment to economic stability. The focus on reducing fiscal deficit, while simultaneously investing in infrastructure and welfare schemes, is a balanced approach that prioritizes both growth and social responsibility. This strategic direction aligns with the nation's goals for sustainable development.
NationPress
27/07/2025
Frequently Asked Questions
What is the fiscal deficit target for FY25?
The fiscal deficit target for FY25 is set at 4.8% of the GDP.
How much revenue did the Central government collect?
The Central government collected Rs 30.36 lakh crore from tax and non-tax receipts.
What is the significance of a declining fiscal deficit?
A declining fiscal deficit indicates stronger economic fundamentals and facilitates more lending in the banking sector, promoting growth.
What was the fiscal deficit for 2023-24?
The fiscal deficit for 2023-24 was 5.63% of GDP.
What dividend was announced by the RBI?
The RBI announced a record dividend of Rs 2.69 lakh crore to the government.
