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he Indian government has announced the fiscal deficit targets for the upcoming years. The fiscal deficit for FY25 is set at 4.8% of the Gross Domestic Product (GDP), while the estimated fiscal deficit for FY26 stands at 4.4%.
- FY25 Fiscal Deficit at 4.8%: The government aims to limit the fiscal deficit to 4.8% of GDP in FY25, ensuring a balance between growth and fiscal responsibility.
- FY26 Projection at 4.4%: For FY26, the fiscal deficit is projected to reduce further to 4.4%, reflecting the government's efforts to control expenditure and improve fiscal discipline.
- Government Fiscal Strategy: The fiscal deficit targets are part of the government's broader strategy to manage public finances, control inflation, and focus on long-term economic growth.
The government’s target to lower the fiscal deficit will help in managing debt levels and maintaining economic stability. The reduction in the fiscal deficit is also aimed at improving investor confidence and ensuring sustainable growth in the economy.
Also Read: Key Takeaways from Union Budget 2025
