This marks a significant improvement driven by higher tax receipts, an early dividend payout by the Reserve Bank of India, and scaled-back capital spending amid election-related constraints.
On track to meet target of 5.1%
There is a need to go back to the FRBM and retain the fiscal deficit to 3% of GDP as the target of 4.5% is not good enough.
Has been on a steady decline since the peak in Covid year
It reduced to 6.72% in FY22 due to economic recovery after the lockdown, but still remained higher than anything in the past decade.
