Context:
The fiscal deficit the gap between government expenditure and revenue—stood at ₹9.14 lakh crore at the end of December 2024, 56.7% of the full-year target. This is slightly higher than 55% in the same period last year.
Fiscal Deficit Trends
- Current fiscal deficit (Apr–Dec 2024-25)
- ₹9.14 lakh crore.
- Percentage of annual target
- 56.7% of the Budget Estimates (BE) for 2024-25.
- Comparison to last year
- 55% of BE in Apr–Dec 2023-24.
- Full-year target
- Government aims to reduce fiscal deficit to 4.9% of GDP in 2024-25, down from 5.6% in 2023-24.
- Absolute fiscal deficit target
- ₹16.13 lakh crore for FY 2024-25.
Revenue and Expenditure Performance
Tax Revenue (Net)
- ₹18.43 trillion collected (Apr–Dec 2024).
- 71.3% of BE achieved, slightly lower than 74.2% in the same period last year.
Total Expenditure
- ₹32.32 trillion spent, which is 67% of BE.
- Slightly lower than 67.8% last year.
- Breakdown:
- Revenue expenditure: ₹25.46 trillion (68.7% of BE).
- Capital expenditure: ₹6.85 trillion (61.7% of BE).
Fiscal Management Strategy
- Targeted fiscal consolidation
- Government aims to limit borrowing needs while maintaining economic growth.
- Spending efficiency
- Focus on capital expenditure for infrastructure while keeping revenue spending in check.
- Revenue mobilization
- Continued push on tax collection efficiency and non-tax revenues.
