1 Feb 2024

Union Government has budgeted fiscal deficit at 5.1% of GDP for FY25

Union Government has pegged domestic fiscal deficit at 5.1% of GDP for FY25 while it revised fiscal deficit to 5.8% for current fiscal year

author dp
Team INRBonds
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Salient features of Union Budget FY25

  • In absolute terms, gross fiscal deficit has been budgeted at Rs 16854.94 billion for FY25.
  • Gross market borrowing and net market borrowing have been budgeted at Rs 14.13 trillion and 12.25 trillion.
  • Nominal GDP for BE 2024-25 has been projected at Rs 327.71 trillion assuming 10.5 % growth over the estimated Nominal GDP of Rs 296.57 trillion as per the First Advance Estimates of FY 2023-24.  
  • 73% of the fiscal deficit to be financed by market borrowing.

Budget Nos(Rs billion)

FY23BE

% change of FY22 RE

FY23RE

% change of FY23 BE

FY24BE

% change of FY23 RE

FY24RE

% change of FY24 BE

FY25BE

% change of FY24 RE

Gross Fiscal Deficit

16611.96

4.41%

17553.19

5.67%

17868.16

1.79%

17347.73

-2.91%

16854.94

-2.84%

Nominal GDP

258234.00

11.24%

273077.51

5.75%

301750.65

10.50%

296577.45

8.61%

327718.08

10.50%

Fiscal Deficit % of GDP

6.40

-7.25%

6.40

0.00%

5.90

-7.81%

5.80

-1.69%

5.10

-12.07%

Government Borrowing Net

11587.19

32.31%

11958.66

3.21%

12309.11

2.93%

11817.79

-3.99%

12251.82

3.67%

Government Borrowing Gross

14950.00

42.86%

14310.00

-4.28%

15450.00

7.97%

15450.00

0.00%

14130.00

-8.54%

Government Net Borrowing % of Fiscal Deficit

69.75%

26.72%

68.13%

-2.33%

68.89%

1.12%

68.12%

-1.11%

72.69%

6.70%