Govt may trim fiscal deficit to 4.2-4.3% of GDP

The Centre is likely to narrow its fiscal deficit to 4.2-4.3% of gross domestic product (GDP) in 2025-26, better than its target of 4.4%, driven by higher-than-anticipated dividends from state-run enterprises, banks and the Reserve Bank of India (RBI).

- Rhik Kundu & Subhash Narayan

engine humming, two people aware of the development told Mint. While the 2025-26 budget pegs the fiscal deficit at 4.4% of GDP, the actual figure is likely to come in lower, much like in 2024-25, said the first official cited above on the condition of anonymity. "This reflects the government's commitment to fiscal discipline even as it balances growth