India's fiscal deficit from April to January reaches 74.5% of full year target for FY25

New Delhi, Feb 28 (NationPress) India's fiscal deficit for the initial ten months of the ongoing financial year (April-January) reached Rs 11.70 lakh crore, equivalent to 74.5 percent of the annual estimates, as per the data disclosed by the Controller General of Accounts (CGA) on Friday.

In total terms, the fiscal deficit for the financial year concluding in March 2025 is projected at Rs 15.69 lakh crore.

Total receipts amounted to Rs 24 lakh crore, while overall expenditure from April to January was Rs 35.70 lakh crore, representing 76.3 percent and 75.7 percent of this fiscal year's revised budget targets.

The overall deficit aligns with the targeted figure of 4.8 percent of GDP set by Finance Minister Nirmala Sitharaman as part of the fiscal consolidation strategy, according to ICRA's chief economist Aditi Nayar.

The government's spending for the ten months totaled Rs 35.7 lakh crore, reaching 75.7 percent of the annual target. Capital expenditure, earmarked for infrastructure development, was Rs 7.57 lakh crore, or 74.4 percent of the yearly goal.

Revenue receipts amounted to Rs 23.71 lakh crore, with tax revenue at Rs 19.04 lakh crore and non-tax revenue at Rs 4.68 lakh crore.

Tax and non-tax revenues were 74.4 percent and 88.1 percent of the revised budgeted estimates.

Finance Minister Sitharaman has announced a budget deficit target on a declining trajectory to 4.4 percent of GDP in 2025-26 from 4.8 percent of GDP in 2024-25.

In the FY'25 Budget, the government estimated gross tax revenue at Rs 38.40 lakh crore, reflecting an 11.72 percent increase from FY'24. This includes Rs 22.07 lakh crore from direct taxes (personal income and corporate tax) and Rs 16.33 lakh crore from indirect taxes (customs, excise, GST).

The net market borrowing for the budget 2025-26 has been set at Rs 11.54 lakh crore, while the remaining funds will be sourced from small savings schemes, according to the Finance Minister.

The government's gross borrowing target for FY26 was revised upward by 5.7 percent to Rs 14.82 lakh crore, previously set at Rs 14.01 lakh crore for FY25.

"In the July Budget, I committed to maintaining the course for fiscal consolidation, and we will strive to keep the fiscal deficit each year so that the Central government debt continues to decline as a percentage of GDP," FM Sitharaman stated.

"Looking ahead to 2025-26, the total receipts excluding borrowings and the total expenditure are estimated at Rs 34.96 lakh crore and Rs 50.65 lakh crore, respectively. The net tax receipts are projected at Rs 28.37 lakh crore. The fiscal deficit is anticipated to be 4.4 percent of GDP," the Finance Minister added.