
The Union Budget 2025-26 has laid out the government’s roadmap for fiscal consolidation while managing increased expenditure. The Finance Minister announced that the fiscal deficit for 2025-26 is estimated at 4.4% of GDP, down from the 4.8% projected for 2024-25. This reflects the government’s commitment to reducing the fiscal deficit in line with the Fiscal Responsibility and Budget Management (FRBM) roadmap.
Revised estimates for 2024-25
- Total receipts (excluding borrowings): ₹31.47 lakh crore
- Net tax receipts: ₹25.57 lakh crore
- Total expenditure: ₹47.16 lakh crore
- Capital expenditure: ₹10.18 lakh crore
- Fiscal deficit: 4.8% of GDP
Budget estimates for 2025-26
- Total receipts (excluding borrowings): ₹34.96 lakh crore
- Net tax receipts: ₹28.37 lakh crore
- Total expenditure: ₹50.65 lakh crore
Financing the fiscal deficit
To cover the fiscal deficit, the government plans net market borrowings of ₹11.54 lakh crore from dated securities. Additionally, gross market borrowings are estimated at ₹14.82 lakh crore, with the remaining balance expected from small savings and other sources.
This fiscal roadmap signals the government’s focus on balancing fiscal prudence with developmental spending, aiming to reduce debt while sustaining economic growth.