Govt confident of meeting 4.9% fiscal deficit target

The Union government is confident of achieving the fiscal deficit target of 4.9% of the gross domestic product (GDP) or below in the current financial year, and may strive to bring fiscal deficit below 4.5% of GDP in the upcoming Union Budget through prudent expenditure management and buoyant revenue receipts, two officials aware of the matter said.

- Rajeev Jayaswal

NEW DELHI:

Adhering to the fiscal "glide path", the upcoming budget may continue to focus on high capital expenditure to attract private investments and adequately provide resources for vulnerable sections of the society since macroeconomic fundamentals are strong and there are enough resources for all key programmes, the people said, asking not to be named.

To be sure, this is a work on progress and a final call will be taken before the Union Budget for 2025-26 is presented in Parliament by finance minister Nirmala Sitharaman on February 1.

The government's prudent fiscal management will in no way compromise on committed welfare and developmental works, the people said.