India likely to record fiscal deficit for FY25 at 4.7%-4.8% of GDP, reports Mint Via Reuters
(Reuters) – India is likely to record a fiscal deficit this fiscal year of 4.7%-4.8% of gross domestic product (GDP), below the government’s estimate of 4.9%, mainly driven by lower spending, financial daily Mint reported. .
Lower spending on planned investments and higher-than-expected returns from the central bank could lead to a smaller fiscal deficit, the report said, citing two people with knowledge of the matter.
The plan for fiscal year 2026 is to keep the budget deficit at the government’s target of 4.5%, the newspaper reported, citing one of the sources.
India’s budget deficit stands at 5.6% of GDP in the fiscal year 2023-2024. Its fiscal year runs from April to March.
India’s finance ministry did not immediately respond to Reuters’ request for comment.
Through November, government spending, or infrastructure spending, was 5.13 trillion rupees ($59.41 billion), or 46.2% of the annual target, compared to 5.86 trillion rupees in the same period last year.
Spending this fiscal year has slowed down due to the general election and spending is likely to fall short of the annual target.
Reserve’s share of the last share and annual yield of 2.11 trillion Bank of India (NS:), which was announced last May and will be calculated in fiscal year 2025, will also help reduce the deficit, the report said.
($1 = 86.3310 Indian rupees)
