Monthly data showed that FY26 began with fiscal deficit at 11.9% of the yearly budget estimates (BE), as against 13% last April
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The Centre has managed to restrict fiscal deficit within the revised estimate (RE) of 4.8 per cent during fiscal year 2024-25 (FY25), the Controller General of Accounts (CGA) reported on Friday. However, it exceeded RE in absolute number.
According to data made public by the CGA, the Centre got over ₹30.78 lakh crore during FY25 as against ₹24.99 lakh crore in FY24. During this period, ₹12.87 lakh crore was transferred to the States as devolution of share of taxes, which is over ₹1.57 lakh crore more than the previous year.
The government incurred a total expenditure of over ₹46.55 lakh crore – 98.7 per cent of RE. Of this, revenue expenditure accounted for over ₹36 lakh crore and capital expenditure (capex) at over ₹10.52 lakh crore. In fact, capex exceeded RE of ₹10.18 lakh crore, which had an impact on the absolute fiscal deficit number. The fiscal deficit ended at ₹15.77 lakh crore as against RE of over ₹15.69 lakh crore. With the size of GDP now pegged at ₹330.68 lakh crore, fiscal deficit for FY25 is at 4.8 per cent, as projected in the RE.
Aditi Nayar, Chief Economist with ICRA, noted that capex surprisingly overshot while revenue expenditure saw a saving of Rs 0.9 lakh crore. While higher estimates of nominal GDP had an impact on fiscal deficit for FY25, it also augurs well for meeting the deficit- and debt-to-GDP targets for FY26.
“Despite a relatively lower projected nominal GDP growth of 9 per cent in FY26 vis-à-vis the budgeted levels of 10.1 per cent, the fiscal deficit-to-GDP ratio can be contained at 4.4 per cent in FY26, while also accommodating a marginal fiscal slippage (to the tune of ₹30,000-35,000 crore), given the larger base,” she said, adding that the higher-than-estimated transfer of surplus by the RBI will give some comfort on the fiscal front.
Meanwhile, monthly data showed that FY26 began with fiscal deficit at 11.9 per cent of the yearly budget estimates (BE). It was 13 per cent during last April. CGA data showed total receipts were over ₹2.79 lakh crore (8 per cent of the BE). During the month, over ₹81,000 crore was transferred to State governments as devolution of share of taxes, which is ₹11,860 crore higher than the previous year. Total expenditure incurred by the Centre was over ₹4.65 lakh crore.
Published on May 30, 2025
Monthly data showed that FY26 began with fiscal deficit at 11.9% of the yearly budget estimates (BE), as against 13% last April
| Photo Credit:
Getty Images
The Centre has managed to restrict fiscal deficit within the revised estimate (RE) of 4.8 per cent during fiscal year 2024-25 (FY25), the Controller General of Accounts (CGA) reported on Friday. However, it exceeded RE in absolute number.
According to data made public by the CGA, the Centre got over ₹30.78 lakh crore during FY25 as against ₹24.99 lakh crore in FY24. During this period, ₹12.87 lakh crore was transferred to the States as devolution of share of taxes, which is over ₹1.57 lakh crore more than the previous year.
The government incurred a total expenditure of over ₹46.55 lakh crore – 98.7 per cent of RE. Of this, revenue expenditure accounted for over ₹36 lakh crore and capital expenditure (capex) at over ₹10.52 lakh crore. In fact, capex exceeded RE of ₹10.18 lakh crore, which had an impact on the absolute fiscal deficit number. The fiscal deficit ended at ₹15.77 lakh crore as against RE of over ₹15.69 lakh crore. With the size of GDP now pegged at ₹330.68 lakh crore, fiscal deficit for FY25 is at 4.8 per cent, as projected in the RE.
Aditi Nayar, Chief Economist with ICRA, noted that capex surprisingly overshot while revenue expenditure saw a saving of Rs 0.9 lakh crore. While higher estimates of nominal GDP had an impact on fiscal deficit for FY25, it also augurs well for meeting the deficit- and debt-to-GDP targets for FY26.
“Despite a relatively lower projected nominal GDP growth of 9 per cent in FY26 vis-à-vis the budgeted levels of 10.1 per cent, the fiscal deficit-to-GDP ratio can be contained at 4.4 per cent in FY26, while also accommodating a marginal fiscal slippage (to the tune of ₹30,000-35,000 crore), given the larger base,” she said, adding that the higher-than-estimated transfer of surplus by the RBI will give some comfort on the fiscal front.
Meanwhile, monthly data showed that FY26 began with fiscal deficit at 11.9 per cent of the yearly budget estimates (BE). It was 13 per cent during last April. CGA data showed total receipts were over ₹2.79 lakh crore (8 per cent of the BE). During the month, over ₹81,000 crore was transferred to State governments as devolution of share of taxes, which is ₹11,860 crore higher than the previous year. Total expenditure incurred by the Centre was over ₹4.65 lakh crore.
Published on May 30, 2025
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The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making
The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution
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