Finance Secretary Tuhin Kanta Pandey has expressed confidence that the government will achieve its fiscal deficit target of 4.9% of GDP for the financial year 2024-25. Speaking at a recent event, Pandey emphasized that the fiscal consolidation path remains on track, aligning with the government’s commitment to maintaining fiscal discipline while supporting economic growth.
Source:-bbc news
The fiscal deficit for FY24 was pegged at 5.9% of GDP, with the target for FY25 reflecting a gradual reduction in line with the roadmap to achieve a fiscal deficit of 4.5% by FY26. Pandey highlighted that the government’s strategy includes boosting tax revenue, improving expenditure efficiency, and rationalizing subsidies. Robust GST collections and strong direct tax revenues have provided a solid foundation for fiscal management.
Source:- news 18
On the expenditure side, the focus will be on capital investments to drive economic growth while optimizing non-essential spending. Despite global economic uncertainties and inflationary pressures, the government remains committed to its fiscal targets without compromising on development priorities.
Pandey acknowledged challenges such as global economic volatility and potential revenue pressures, but he expressed confidence in the resilience of the Indian economy and the efficacy of government policies. The continued emphasis on infrastructure development, coupled with policy measures to attract private investment, is expected to sustain growth momentum.
The government’s fiscal prudence is critical for maintaining macroeconomic stability, enhancing investor confidence, and achieving long-term economic goals. As FY25 approaches, all eyes will be on the government’s ability to balance fiscal discipline with growth-oriented measures.
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