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Q24 (CAPF/2025) Economy › Government Finance & Budget › Union Budget process Answer Verified

Which one among the following is the estimated fiscal deficit as a percentage of GDP of India in the Budget Estimates of 2025-26?

Result
Your answer: —  Â·  Correct: B
Explanation

According to the Union Budget 2025-26 presented by the Finance Minister, the estimated fiscal deficit for the financial year 2025-26 is pegged at 4.4 percent of the Gross Domestic Product (GDP) [1]. This target reflects the government's commitment to a fiscal consolidation glide path, aiming to reduce the deficit from the Revised Estimate of 4.8 percent in FY 2024-25 [1]. The budget estimates the fiscal deficit in absolute terms at approximately ₹15.69 trillion. This reduction is part of a broader strategy to bring the fiscal deficit below 4.5 percent by FY 2025-26, as originally envisioned in the FY 2021-22 budget [1]. The fiscal math is supported by a projected nominal GDP growth of 10.1 percent and continued focus on expenditure rationalization while maintaining capital expenditure levels.

Sources

  1. [1] https://www.pib.gov.in/PressReleasePage.aspx?PRID=2098357&utm
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