Government Stays Committed To Fiscal Consolidation, Aims For 4.4% Fiscal Deficit: Budget 2025

New Delhi, Feb 1 (KNN) In the Union Budget 2025-26, Finance Minister Nirmala Sitharaman reiterated the government's commitment to fiscal consolidation, a goal initially outlined in the July Budget. 

She emphasized the ongoing efforts to maintain a fiscal deficit each year that ensures the Central Government debt continues on a declining trajectory as a percentage of GDP. 

A detailed roadmap for the next six years has been outlined in the Fiscal Responsibility and Budget Management (FRBM) statement.

The Revised Estimate for total receipts, excluding borrowings, stands at Rs 31.47 lakh crore, with net tax receipts accounting for Rs 25.57 lakh crore. 

The total expenditure for the year is projected at Rs 47.16 lakh crore, of which capital expenditure is Rs 10.18 lakh crore. As a result, the Revised Estimate for the fiscal deficit is 4.8 percent of GDP.

Looking ahead to 2025-26, the government estimates total receipts, excluding borrowings, to be Rs 34.96 lakh crore, with total expenditure at Rs 50.65 lakh crore. 

Net tax receipts are projected to reach Rs 28.37 lakh crore. For the fiscal year, the fiscal deficit is estimated to be 4.4 percent of GDP.

To finance the fiscal deficit, the government plans net market borrowings from dated securities of Rs 11.54 lakh crore. 

The remaining financing will come from small savings and other sources, with gross market borrowings estimated at Rs 14.82 lakh crore.

(KNN Bureau)