Union Finance Minister Nirmala Sitharaman presented the Union Budget for the fiscal year 2024-25 on Tuesday, announcing a fiscal deficit target of 4.9% of Gross Domestic Product (GDP). This marks a reduction from the 5.1% target set in the Interim Budget presented on February 1, 2024.
In the previous fiscal year, 2023-24, the government initially set a fiscal deficit target of 5.9% of GDP. This figure was later revised downward to 5.8%. The fiscal deficit, defined as the difference between total government revenue and total expenditure, represents the extent of borrowing needed by the government.
Sitharaman emphasized the government’s commitment to fiscal consolidation, aiming to reduce the fiscal deficit to below 4.5% of GDP by the financial year 2025-26. She stated, “The fiscal consolidation path announced by me in 2021 has served our economy very well, and we aim to reach the deficit below 4.5% next year.”
Looking beyond the immediate future, Sitharaman highlighted the government’s long-term goals, saying, “The government is committed to staying the course. From 2026-27 onwards, our endeavor will be to keep the fiscal deficit each year such that the central government’s debt will be on a declining path as a percentage of GDP.”
This strategic approach underscores the government’s focus on sustainable economic management and fiscal responsibility, reflecting its broader objective to stabilize and strengthen the nation’s financial health over the coming years.
(With ANI Inputs)
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