The government’s fiscal deficit had widened to Rs 9.78 lakh crore in the April-November period, accounting for 58.9% of the full-year target, data released on December 30 by the Controller General of Accounts showed
Finance minister Nirmala Sitharaman on February 1 pegged the government’s fiscal deficit for 2023-24 at 5.9 percent of gross domestic product (GDP), demonstrating the government’s intent to walk the talk on fiscal rectitude.
This would represent a reduction of 50 basis points from this year’s fiscal deficit target of 6.4 percent, which Finance Minister Nirmala Sitharaman said would be met.
Next year’s target is in line with economists’ expectations of 5.9 percent. However, some questions have been raised – particularly by global ratings agencies like Moody’s Investors Service and Fitch Ratings – about how the medium-term target of 4.5 percent will be met by 2025-26.
The central government’s fiscal deficit widened to Rs 9.78 lakh crore in the April-November period, accounting for 58.9 percent of the full-year target, data released on December 30 by the Controller General of Accounts showed.
The fiscal deficit in the first eight months of the last financial year was 46.2 percent of last year’s target.