New Delhi [India], February 1 : Presenting the Union Budget, Finance Minister Nirmala Sitharaman on Saturday pegged the fiscal deficit target at 4.4 per cent of GDP for the financial year 2025-26.
For 2024-25, the fiscal deficit target has been revised from 4.9 per cent of gross domestic product (GDP) to 4.8 per cent. In the Interim Budget tabled on February 1 last year, the Finance Minister had pegged it at 5.1 per cent of GDP.
In 2023-24, the government pegged the fiscal deficit target for 2023-24 at 5.9 per cent of gross domestic product (GDP). Later, the fiscal deficit for 2023-24 was downwardly revised to 5.8 per cent.
The difference between total revenue and total expenditure of the government is termed as the fiscal deficit. It is an indication of the total borrowings that may be needed by the government.
The government intends to bring the fiscal deficit below 4.5 per cent of GDP by the financial year 2025-26.
The budget session of parliament that began on January 31 and, according to schedule, will end on April 4. The budget speech outlined the government's fiscal policies, revenue and expenditure proposals, taxation reforms, and other significant announcements.
In her budget speech the Finance Minister stated that the government sees the next five years as a unique opportunity to realise development for all (Sabka Vikas) to stimulate balanced growth of all regions. The Finance Minister remarked that India's development track record for the past 10 years and structural reforms have drawn global attention.
Addressing the Lok Sabha on Union Budget 2025, Sitharaman said, "Our economy is the fastest growing among all major economies. Our development track record for the past 10 years and structural reforms have drawn global attention. Confidence in India's capability and potential has only grown in this period. We see the next 5 years as a unique opportunity to realise sabka vikas, stimulating balanced growth of all regions."
Sitharaman stated that this budget proposes development measures in around 10 broad areas which focus on the poor, youth, farmers and women.
"In this Budget, the proposed development measures span 10 broad areas, focussing on the poor, youth, farmers and women," she said.
The Union Finance Minister further announced a Nuclear Energy Mission to drive India's transition towards clean energy in line with the goal of achieving the resolution of Vikshit Bharat (developed India).
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