Govt to bring fiscal deficit below 4.5% of GDP by FY26: FM

Finance Minister Nirmala Sitharaman said that the fiscal deficit for 2023-24 is estimated at 5.9% of the GDP and that the government will stick to the fiscal consolidation roadmap. Detailing the 2023-24 estimates, Sitharaman said in the budget speech, "The total receipts other than borrowings and the total expenditure are estimated at ₹27.2 lakh crore and ₹45 lakh crore, respectively. The net tax receipts are estimated at ₹23.3 lakh crore."

"The fiscal deficit is estimated to be 5.9% of GDP. In my Budget Speech for 2021-22, I had announced that we plan to continue the path of fiscal consolidation, reaching a fiscal deficit below 4.5% by 2025-26 with a fairly steady decline over the period. We have adhered to this path, and I reiterate my intention to bring the fiscal deficit below 4.5% of GDP by 2025-26," she added.

"To finance the fiscal deficit in 2023-24, the net market borrowings from dated securities are estimated at ₹11.8 lakh crore. The balance financing is expected to come from small savings and other sources. The gross market borrowings are estimated at ₹15.4 lakh crore," she said.