Fiscal Deficit Target for the Financial Year 2025 26 was set to reduce it to 4 4 percent | Budget 2025: Finance Minister estimates fiscal deficit for 2026, said

Budget 2025: Today Finance Minister Nirmala Sitharaman has presented India’s general budget. During his budget speech, he said that the fiscal deficit of GDP is expected to remain 4.4 percent in FY 2025-26. However, earlier he had said that in 2026-27, the government aims to bring the fiscal deficit to 4.5 percent. That is, it is less than the forecast of the government.

This is estimated to be gross and pure market borrowings

The Finance Minister said that the gross and net market borrowing in FY 26 has been estimated at Rs 14.82 lakh crore and Rs 11.54 lakh crore respectively. In this, the government borrows from the market to meet the fiscal deficit.

In contrast, the government’s gross borrowing for the budget in FY 25 was Rs 14.01 lakh crore. The market keeps an eye on how much the government has borrowed, that too when the dividend of the Reserve Bank of India (RBI) is less in it. Explain that for FY 2025, the Reserve Bank had paid a dividend of Rs 2.11 lakh crore to the Central Government. In FY 26, an estimate of tax received from tax has been imposed at Rs 28.37 lakh crore.

The fiscal deficit was so much in the current financial year

Let us know that for the current financial year (from April 2024 to March 2025), the fiscal deficit was estimated to be 4.9 percent of GDP. It has now been changed to 4.8 percent.

While presenting the budget today, the Finance Minister said that the purpose of the general budget is to improve the taxation, electricity, urban development, mining, financial sector and regulatory reforms. Presenting the 14th consecutive budget under the Narendra Modi government since 2014, the Finance Minister said, “We have gone together on the journey to unlock our ability for economic prosperity.” He also assured that India’s economy is growing faster than all developing economies.

Fiscal deficit

In a financial year, when the government spends more money than earning, it is called a slipic deficit. That is, there is a difference between total revenue and experience. The government sets a target of slipping deficit in every budget.

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