India's Fiscal Deficit Nears Target with 74.5% Exceeded by January 2025

By January 2025, India's fiscal deficit reached 74.5% of its annual goal, as per Controller General of Accounts. With a deficit of Rs 11.69 lakh crore during April-January, tax revenue hit 74.4% of projections, while total expenditure was recorded at 75.7%. The fiscal deficit target for 2024-25 stands at 4.8% of GDP.

India's fiscal deficit has reached 74.5% of the annual target by January 2025, as reported by the Controller General of Accounts (CGA). Data indicates the fiscal deficit stood at Rs 11,69,542 crore from April to January.

Comparing past figures, the deficit was at 63.6% of Revised Estimates (RE) in 2023-24. The CGA data showed that net tax revenue amounted to Rs 19.03 lakh crore, achieving 74.4% of its 2024-25 RE target.

The Union Budget outlines the fiscal deficit for 2024-25 at 4.8% of GDP, with the absolute deficit estimated at Rs 15.69 lakh crore. This reduction underscores the government's fiscal planning and its borrowing needs for financial sustainability.