India has successfully achieved its revised fiscal deficit target of 4.8% of GDP for the financial year 2024–25, reflecting strong fiscal management and higher-than-expected non-tax revenue. This was largely aided by increased tax collections and a record dividend from the Reserve Bank of India.

Key Points:

• The fiscal deficit for FY2024–25 stood at Rs.15.77 lakh crore, aligning with 4.8% of the GDP as per the revised budget estimate.
• Total government receipts reached Rs.30.78 lakh crore, comprising ?24.99 lakh crore in net tax revenue and ?5.37 lakh crore in non-tax revenue.
• Total expenditure for the year was Rs.46.55 lakh crore, with capital expenditure exceeding targets at ?10.52 lakh crore.
• The RBI contributed a record dividend of Rs.2.11 lakh crore, a 141% increase from the previous year, providing crucial fiscal support.
• The government is targeting a reduced fiscal deficit of 4.4% in FY2025–26 and aims to lower the debt-to-GDP ratio to around 50% by 2031.