Fiscal Deficit Achievement
- Fiscal Deficit for FY25: ₹15.77 lakh crore or 4.8% of GDP.
- Target was achieved despite revenue shortfalls.
- Based on provisional GDP estimates and data from Controller General of Accounts (CGA).
Relevance : GS 2(Governance), GS 3(Indian Economy)
Revenue vs Expenditure
- Total Revenue (tax + non-tax + capital receipts): ₹30.78 lakh crore (97.8% of revised estimates).
- Total Expenditure: ₹46.55 lakh crore (also 97.8% of revised estimates).
- Indicates tight fiscal management, avoiding expenditure overruns.
Revenue Shortfalls
- Shortfall in capital receipts:
- Miscellaneous capital receipts: ₹17,202 crore (only 52.1% of target).
- Disinvestment proceeds: ₹10,131 crore — much below expectations.
- Tax revenue shortfall:
- Income tax: ₹11.83 lakh crore (≈6% below revised estimates).
- Corporate tax: ₹9.87 lakh crore (0.7% above revised estimates).
Disinvestment Slippage
- Government aimed higher disinvestment revenue but achieved less than half the target.
- Reflects continued challenges in privatization and asset monetization.
Next Year’s Fiscal Target
- FY26 fiscal deficit target: 4.4% of GDP, as per Budget 2024-25.
- Indicates a continued fiscal consolidation glide path.
- Suggests government aims to reduce borrowing dependency and maintain macroeconomic stability.
Implications & Challenges
- Meeting deficit target despite revenue shortfall shows discipline, but questions remain on:
- Sustainability of non-disinvestment-based financing.
- Pressure on welfare and capital spending in future years.
- Revenue buoyancy will be critical to meet FY26 targets.
