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Fiscal deficit target cut to 4.4% for FY26
February 02, 2025
|The New Indian Express Hubballi
THE budget has pegged fiscal deficit, which is the quantum of government borrowings, for the next fiscal at 4.4% and the same for the current fiscal retained at 4.8%.
Finance minister Nirmala Sitharaman plans to lower debt as a percentage of GDP from FY27. As of FY24, debt-to-GDP ratio stood at 85%. The government has lowered capital expenditure target for FY26 to ₹11.2 lakh crore from ₹11.11 lakh crore for FY25.
Gross borrowing target for FY26 is revised upwards to 5.7% of GDP or ₹14.82 lakh crore and for FY25 at ₹14.01 lakh crore. Gross tax revenue projected at ₹38.40 lakh crore, an 11.72% rise from FY24.
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