Daijiworld Media Network - New Delhi

New Delhi, May 31: The Central government has successfully met its fiscal deficit target for the financial year 2024-25, achieving a deficit of 4.8 per cent of the gross domestic product (GDP), according to data released by the Controller General of Accounts (CGA) on Friday.

The revised budget estimate (RE) had set the fiscal deficit target at 4.8 per cent, and the latest figures confirm that the government’s fiscal consolidation efforts are on track.

As per the CGA data, the Centre collected Rs 30.36 lakh crore in revenue from both tax and non-tax sources, representing 98.3 per cent of the RE for the year. On the expenditure front, the government spent Rs 46.56 lakh crore, or 98.7 per cent of the RE.

The government’s capital expenditure, which includes investments in building physical infrastructure such as ports, highways, and railways, rose to Rs 10.52 lakh crore, compared to Rs 9.49 lakh crore in the previous year. This reflects the government’s focus on boosting economic growth and employment through big-ticket projects.

For the previous fiscal year, 2023-24, the fiscal deficit was 5.63 per cent of GDP. Finance Minister Nirmala Sitharaman has set a glide path to reduce the fiscal deficit further to 4.4 per cent in 2025-26.

A declining fiscal deficit is considered a positive sign for the economy, as it indicates improved fiscal discipline, reduces the government’s borrowing needs, and leaves more funds available in the banking system for lending to businesses and consumers. This, in turn, is expected to support higher economic growth.

In a related development, the Reserve Bank of India (RBI) on Friday announced its highest-ever dividend payout of Rs 2.69 lakh crore to the government — a robust 27.4 per cent increase over the Rs 2.1 lakh crore dividend paid in the previous year.

This record dividend will help the government finance its spending on infrastructure projects and social welfare schemes in 2025-26 while keeping the fiscal deficit in check.