Revised fiscal deficit for 2024-25 at 5.1% compared to 5.8% in FY24, says FM Nirmala Sitharaman

Budget 2024: Revised fiscal deficit for FY24 estimated at 5.1% of GDP, Finance Minister Nirmala Sitharaman said in interim Budget speech.

The revised fiscal deficit for financial year 2024-25 is estimated at 5.1 per cent of the GDP, down from 5.8 per cent for the current financial year 2024 (FY24), Union Minister Nirmala Sitharaman announced in her interim Budget speech on Thursday.

“The revised estimate of the fiscal deficit is 5.8% of GDP, improving on the budget estimate notwithstanding moderation in the nominal growth estimates,” the Finance Minister said.

The fiscal deficit is the difference between the government expenditure and income. The number for 2024-25 was in focus as it was widely expected that the government would open its purse strings in an election year.

The revised estimates of 2023-24 of total receipts other than borrowings is ₹27.56 lakh crore, of which tax receipts are ₹23.24 lakh crore, the Finance Minister said. She added that revenue receipts at ₹30.3 lakh crore are expected to be higher than Budget Estimates.

Highlights of Interim Budget 2024-25

The Finance Minister proposed to raise capital expenditure outlay in the interim Budget 2024-25 by 11.1 per cent to ₹11.75 lakh crore. The government will borrow a gross of ₹14.13 lakh crore from the markers in the fiscal year, the Finance Minister added. She said GST has reduced the compliance burden, and the average monthly GST collection doubled to ₹1.66 lakh crore. The government resorts to market borrowings to bridge the gap between expenditure and revenue (fiscal deficit).

The Finance Minister said the tax receipts are projected at ₹26.02 lakh crore, while total receipts other than borrowings at ₹30.8 lakh crore. The total expenditure is estimated at ₹47.66 lakh crore.