FY25 fiscal deficit meets target at 4.8%

Despite Revenue Shortfall

- PRASANTA SAHU

THE CENTRE'S FISCAL deficit came at 4.77% of GDP for FY25, marginally lower than the 4.84% projected in the revised estimate (RE) for the year, despite a shortfall in revenues—particularly tax receipts.

The fiscal deficit stood at ₹15.77 lakh crore, 100.5% of FY25RE. Yet the fiscal deficit/GDP ratio was contained as the nominal GDP size came in about 2% higher than the first advance estimate.