At 5.6% of GDP, FY24 fiscal gap beats target
fiscal deficit at 5.6% of gross domestic product (GDP) in FY24, beating revised estimate of 5.8% on the back of improved resource mop-up and curtailed revenue expenditure, putting it on track to adhere to the glide path.
In absolute terms, the FY24 fiscal deficit stood at ?16.54 lakh crore, down from the revised estimate of Rs 17.35 lakh crore and FY23 level of Rs 17.38 lakh crore, showed the official data released on Friday. A lower-than-anticipated deficit in FY24 and a generous surplus transfer by RBI earlier this month make the government's goal of reining in fiscal gap at 5.1% of GDP in FY25 seem more realistic now, experts said.
Total Receipts Hit Rs 27.89 Lakh cr
It will also lend further credibility to the government's target of bringing down its fiscal deficit to 4.5% of GDP in the next fiscal year, they added.
With this, the Centre's fiscal deficit has dropped even below its revised estimates in three out of the past four years, with a senior government official calling it a «strong commitment to fiscal discipline».
ET had on Wednesday reported that the FY24 fiscal deficit could be lower than the 5.8% target.
Revenue expenditure moderated 1.3% in the last fiscal year from the revised estimate to Rs 34.94 lakh crore but capital spending remained almost in sync with the target to touch Rs 9.49 lakh crore.
Consequently, total expenditure in FY24 eased 1.1% from the revised estimate to hit Rs 44.43 lakh crore.
«The fiscal dynamics appear favourable for FY25, amid continued resilience in GST (goods and
