FY25 fiscal deficit at ₹8.5 tn till Nov, hits 52% of target

Rising costs and higher spending on subsidies and public sector initiatives fuels deficit

- Nikita Prasad & Rhik Kundu

India's fiscal deficit for April-November was at ₹8.47 trillion, 52.5% of the estimate for FY25, according to data released by Controller General of Accounts (CGA) on Tuesday. This is lower than the ₹9.07 trillion a year ago due to Reserve Bank of India (RBI) dividend and subdued government capex during the first quarter amid the general elections, though tax receipts remained somewhat flat.

The Union government's fiscal deficit target is 4.9% of the gross domestic product (GDP) for 2024-25 (FY25), as announced by finance minister Nirmala Sitharaman in the Union budget 2024-25 against the 5.6% in 2023-24, which was lower than the revised estimates of 5.8%.

During the April-November period, net tax receipts stood at ₹14.43 trillion, or 56% of the target set in the annual budget in July, against ₹14.36 trillion in the same period of the previous year, CGA data showed.

Total government expenditure during the period was ₹27.41 trillion, or 57% of the annual target, against ₹26.52 trillion in the year-ago period.