Union Budget 2025-26 for Fiscal Deficit Target

1. The total expenditure is estimated at Rs.50,65,345 crore. When compared to last year, an increase of 7.4%.

1. Capital expenditure may increase by around 10.1% when compared to the last financial year.

1. Revenue expenditure may increase by around 6.7% when compared to the last financial year.

1. Gross tax revenue is expected to increase by 10.8%.

1. Net tax revenue is estimated to be around Rs.28,37,409 crore. When compared to the last financial year, an increase of 11%.

Highlights from Union Budget FY 2024-2025 

Here are some of the major highlights of Union Budget 2024-2025 on fiscal situation:

1. The fiscal deficit is estimated at 4.90% of GDP

1. Targeting to reach a deficit below 4.5 per cent next year, thereby aiming to keep the fiscal deficit each year on the declining path as percentage of GDP.

Key Highlights from the Interim Union Budget 2024-25

1. The government aims for a fiscal deficit target of 5.1% of GDP for the financial year 2024-2025 (FY25).
2. Gross and net market borrowings through dated securities for FY25 are estimated at Rs.14.13 and Rs.11.75 lakh crore, respectively, lower than FY24.
3. The Finance Minister emphasized fiscal consolidation, with a goal to reduce the fiscal deficit below 4.5% by 2025-26.
4. The fiscal deficit target for FY24 is revised to 5.8% of GDP, improved from the Budget estimate.
5. Total receipts (excluding borrowings) and total expenditure for FY25 are estimated at Rs.30.80 and Rs.47.66 lakh crore, respectively.
6. Tax receipts for FY25 are estimated to be Rs.26.02 lakh crore.
7. During the first nine months of FY24, the fiscal deficit stood at Rs.9.82 trillion, 55% of the annual estimate of Rs.17.87 trillion.
8. Despite increased government spending, the fiscal deficit declined due to higher tax receipts and non-tax revenue.
9. Total receipts during this period were Rs.20.72 trillion, with tax receipts at Rs.17.30 trillion and non-tax revenue at Rs.3.12 trillion.
10. Total expenditure rose to Rs.30.54 trillion, 67.8% of the annual estimate, compared to Rs.28.18 trillion in the corresponding period in FY23.
11. India's fiscal deficit has been narrowing since FY21, reaching 6.4% in FY23 from 9.2% in FY21.
12. In last year's Budget speech, the finance minister aimed to narrow the fiscal deficit to 5.9% of GDP in FY24, which is now revised to 5.8%.

The Union Budget for FY 2021-22 - Fiscal Deficit Target Revised

Union Finance Minister Nirmala Sitharaman in her budget speech said that the government is looking to achieve a fiscal deficit of 6.8% of GDP for 2021-22. She added that they intend to reach a fiscal deficit level of below 4.5% by 2025-26 by increasing the buoyancy of tax revenue through improved compliance and increased receipts from monetization of assets which includes public sector enterprises and land.

Other Highlights of Fiscal Deficit in the Union Budget

1. The budget estimates for expenditures in 2021-22 is set at Rs.34.83 lakh crores to to ensure economy is given the required push.
2. Rs.5.54 lakh crore will be used as capital expenditure.
3. Compared to the budget estimates figure of 2020-21, capital expenditure sees an increase of 34.5%.
4. Gross borrowing from the market for the next year would be around Rs.12 lakh crores.
5. Union Finance Minister has proposed to increase the Contingency Fund of India to Rs.30,000 crore from Rs.500 crore through the Finance bill.
6. States will be allowed a normal ceiling of net borrowing ceiling at 4% of GSDP for 2021-22 out of which a portion is to be spent on incremental capital expenditure. Additional borrowing ceiling of 0.5% of GSDP will be provided to states. However, that is subject to conditions.
7. A fiscal deficit of 3% of GSDP is expected to be reached by 2023-24 by the states.

Union Budget 2020-2021

Sitharaman said that the fiscal deficit in revised estimates 2020-21 was pegged at 9.5% of GDP. It was funded through government borrowings, multilateral borrowings, short-term borrowings and small saving funds. The revised estimates in the previous year were Rs.34.5 lakh crore as against the original budget estimates expenditure of Rs.30.42 lakh crores. The capital expenditure in revised estimates stood at Rs.4.39 lakh crores as against budget estimates of Rs.4.12 lakh crore in 2020-21.