Fiscal Deficit (FY 2024–25)

Current Context: Data released by the Controller General of Accounts (CGA) on 30 May 2025 show India’s Fiscal Deficit at 4.8% of GDP for FY 2024–25, matching the Revised Estimate (RE) from the Union Budget.

ABOUT Fiscal Deficit

• Fiscal Deficit: The gap between the government’s total expenditure and its total receipts (excluding borrowings). It represents the amount the government must borrow to meet its expenses.
• Fiscal Deficit = Total Expenditure – (Revenue Receipts + Non-Debt Capital Receipts).
  • Represents the shortfall requiring government borrowing.

Non‐Debt Capital Receipts:

• Receipts that do not create debt, such as loan recoveries and proceeds from sale of public sector assets (e.g., disinvestment).
• FY 2024–25 Figures:
  • Total Expenditure: ₹46.55 lakh crore (98.7% of RE).
  • Revenue Receipts: ₹30.78 lakh crore (97.8% of RE), including
    • Tax Revenue: ₹24.99 lakh crore (net to Centre).
    • Non-Tax Revenue: ₹5.38 lakh crore.
  • Non-Debt Capital Receipts: ₹41,818 crore (e.g., disinvestment proceeds).
  • Fiscal Deficit: ₹15.77 lakh crore (100.5% of RE), i.e., 8% of GDP.