As per the Union Budget 2025-26, what is India's fiscal deficit target (as % of GDP) for FY 2025-26?
Show answer & explanation
Correct answer: B
Explanation
Solution: The correct answer is 4.40%.
Explanation:
☛ Union Finance Minister Nirmala Sitharaman presented the Union Budget 2025-26 in Parliament on 1 February 2025.
☛ For the financial year 2025-26 (FY26), the government pegged the fiscal deficit target at 4.4% of GDP.
☛ This meets the fiscal consolidation roadmap set earlier to bring down the fiscal deficit to below 4.5% by FY 2025-26.
☛ The fiscal deficit for FY 2024-25 (Revised Estimates) was pegged at 4.8% of GDP.
Extra Exam-Relevant Facts:
☛ Fiscal Deficit definition: It is the excess of total budget expenditure over total budget receipts (excluding borrowings).
☛ Fiscal Responsibility and Budget Management (FRBM) Act: Enacted in 2003 to institutionalize financial discipline and reduce fiscal deficits.
☛ Article 112: The Constitution of India refers to the Union Budget as the 'Annual Financial Statement' under Article 112.
☛ Capital Expenditure: The budget continues to emphasize public capital expenditure to drive economic growth and infrastructure development.
Important One-Liners for Upcoming Exams:
☛ Under which Article of the Indian Constitution is the Annual Financial Statement presented? → Article 112
☛ In which year was the FRBM Act enacted? → 2003
☛ Who presents the Union Budget in the Indian Parliament? → Union Finance Minister
☛ What is the formula for calculating Fiscal Deficit? → Total Expenditure - (Total Receipts excluding borrowings)
☛ What was the Revised Estimate (RE) of fiscal deficit for FY 2024-25? → 4.8% of GDP