Try GOLD - Free
Fiscal deficit may stay below estimate at 4.2-4.3% of GDP
Mint Bangalore
|June 16, 2025
Higher-than-expected dividends from RBI, PSUs may provide room to maintain spending
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).
A narrow gap in revenue and expenditure will provide the central government with added fiscal space to maintain capital spending to keep the growth 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 imperatives," the person said.
"Stronger revenue flows will allow room to outperform targets without compromising on capital expenditure," the person added.
This story is from the June 16, 2025 edition of Mint Bangalore.
Subscribe to Magzter GOLD to access thousands of curated premium stories, and 10,000+ magazines and newspapers.
Already a subscriber? Sign In
MORE STORIES FROM Mint Bangalore
Mint Bangalore
Beer makers seek relief on can norms
The domestic beer industry, which has been facing an acute shortage of aluminium cans and fearing an impact on growth trajectory, has urged the government fora ‘short-term regulatory relaxation’ in quality control norms to ensure uninterrupted supply from overseas.
1 min
October 13, 2025
Mint Bangalore
When is the ‘right’ time to quit your job?
If you leave a job too early, you risk looking impatient. On the other hand, staying too long can lead to stagnation, burnout or resentment
5 mins
October 13, 2025
Mint Bangalore
We must fight climate-change denial with scientific evidence
What Trump called a 'con job' is a real crisis that we can't dismiss
3 mins
October 13, 2025
Mint Bangalore
Differences aside, Tata Trusts keen to retain Tata Sons as unlisted firm
two executives said. Mint could not ascertain if the said trustee discussed his view with others.
1 mins
October 13, 2025
Mint Bangalore
DGCA flags RAT issues, orders Air India fleet review
India’s Aviation safety regulator Directorate General of Civil Aviation (DGCA) has directed Air India to reinspect Ram Air Turbine (RAT) stowage on all aircraft where the power conditioning module (PCM) was replaced recently.
1 mins
October 13, 2025
Mint Bangalore
Gaza: What gives Israel its courage to defy the world?
Once again, the Levant is on the verge of peace. I know what to say about how long this peace would last, but I wish to be more hopeful than prescient, even though I am a columnist. By many measures, Israel won this war.
4 mins
October 13, 2025
Mint Bangalore
Jindal's TKSE bid faces €2-3 bn pension, workforce hurdles
TKSE's European steel unit accounts for roughly half of thyssenkrupp’s pension obligations
2 mins
October 13, 2025
Mint Bangalore
ED to close Flipkart case if it pays fine
The Enforcement Directorate (ED) is learnt to have offered the option of closing a Foreign Exchange Management Act (Fema) violation case against e-commerce major Flipkart if the Walmart group firm admits its mistake and pays a penalty, sources aware of the development said.
1 min
October 13, 2025
Mint Bangalore
ACME to invest ₹5k cr in green steel
CME Group is planning to invest ₹5,000 crore to set up a direct reduced iron (DRI) facility, according to industry sources.
1 min
October 13, 2025
Mint Bangalore
Why US tariffs will not take us back to the gloomy 1930s
S President Donald Trump's tariff gambit has undeniably thrown the world into turmoil. By relying on a series of bilateral tariff bargains, he has effectively sidelined the multilateral framework of the World Trade Organization (WTO).
3 mins
October 13, 2025
Listen
Translate
Change font size