Finance Minister Nirmala Sitharaman, in her Union Budget presentation for 2024-25, revealed that the fiscal deficit is estimated to reach 4.9 per cent of GDP for the year. This figure is an improvement from the 5.1 per cent target set in the interim budget prior to the Lok Sabha elections.
This estimate aligns with market expectations, which anticipated that the finance minister would maintain a steady fiscal trajectory. Sitharaman also outlined the government’s goal to reduce the fiscal deficit to 4.5per cent by 2025-26.
For FY 25, she projected gross market borrowing to be ₹14.01 lakh crore, with net borrowing expected at ₹11.63 lakh crore.
“The fiscal consolidation strategy I announced in 2021 has proven effective for our economy. We are committed to reducing the deficit to below 4.5 per cent next year,” Sitharaman stated.
She further added, “The government is dedicated to maintaining this course. From 2026-27 onwards, our goal will be to ensure that central government debt decreases as a percentage of GDP.”
Sitharaman also marked a milestone by presenting her seventh consecutive Union Budget, a record for any Indian finance minister.
