At a function organized by the Indian Chamber of Commerce, V. Anantha Nageswaran stated, “Currently, our hope is that the budget deficit target will be met.
On February 1, the government is expected to release its budget for the next fiscal year, with hopes that it will maintain its investment in infrastructure to support medium-term growth. The central government’s fiscal deficit target for the current fiscal year, which ends March 31, is 6.4 percent of GDP.
Many economists and rating institutions such as Fitch Ratings believe the target will be missed.
According to figures released on October 31, the government’s budget deficit widened to 6.20 trillion rupees in the April-September period, or 37.3 percent of the target for the entire l ‘year.
For the 2025-2026 fiscal year, the government wants to reduce the deficit, which has grown significantly since the pandemic, to 4.5 percent of GDP.