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India's fiscal deficit will be 4.8 pc in FY25, below budget estimate of 4.9 pc: CareEdge Ratings
New Delhi: The fiscal deficit of the central government is projected to be 4.8 per cent of GDP for FY25, slightly below the budgeted estimate of 4.9 per cent, according to a report by CareEdge Ratings. The marginal improvement is attributed to healthy tax collections, despite certain shortfalls.
It said "Overall, we project the fiscal deficit at 4.8 per cent of GDP, marginally lower than the budgeted 4.9 per cent".
The report also noted that the Gross tax revenue has seen strong performance in goods and services tax (GST) and income tax collections. These gains have helped cushion the impact of weaker collections in corporate tax and union excise duties.
However, the Centre's capital expenditure (capex) is expected to fall short of its target by Rs 1.5 trillion, which could impact long-term infrastructure growth. At the same time, revenue expenditure might exceed budget estimates due to additional allocations under the first supplementary grant.
It said "Gross tax revenue supported by healthy performance in GST and income tax collection. This has helped partially offset the weakness in corporate tax and union excise duty collections".
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