Fiscal deficit for FY25 pegged at 5.1 pc of GDP against 5.8; No changes in direct, indirect taxes: FM

The fiscal deficit for 2024-25 is estimated at 5.1 per cent of GDP against 5.8 per cent in the current financial year, Finance Minister Nirmala Sitharaman said on Thursday.

 

Presenting the interim Budget 2024-25, Sitharaman said tax receipts for 2024-25 projected is projected at Rs 26.02 lakh crore.

 

She informed that the fiscal deficit in FY24 is expected at 5.8 per cent of GDP, down from 5.9 per cent estimated earlier.

 

The Union government’s fiscal deficit touched Rs 9.82 lakh crore or 55 per cent of the annual Budget target at December-end 2023. In the corresponding period last year, the deficit was 59.8 per cent of the budget estimates for 2022-23.

 

Sitharaman also said 50-year interest-free loans of Rs 75,000 crore to be extended to states to realise the dream of a developed India, and added that every challenge of pre-2014 was overcome through our economic management.

 

A relief to the tax payers has been given by the finance ministry. No changes in tax rates for direct and indirect taxes, including import duties.

 

Sitharaman also said the number of tax filers has swollen 2.4 times and the direct tax collection has trebled since 2014.

 

The processing time of tax returns has been reduced from 93 days in FY14 to 10 days; and refunds have been made faster, she said.

 

The government continues to be on the path of fiscal consolidation to reduce fiscal deficit to 4.5 pc in 2025-26.

 

She added that the tax base of Goods and Services Tax (GST) has more than doubled since FY14.