Union Budget 2025-26: fiscal deficit 4.8% in 2024-25 (RE), 4.4% target for 2025-26
On 1 February 2025, in Parliament in New Delhi, the Union Budget 2025-26 put the 2024-25 fiscal deficit at 4.8% of GDP (Revised Estimate) and targeted 4.4% for 2025-26.
Summary
On 1 February 2025, in Parliament in New Delhi, Finance Minister Nirmala Sitharaman presented the Union Budget 2025-26 with the theme 'Sabka Vikas', naming agriculture, MSMEs, investment and exports as the four engines of growth. The Revised Estimate of the fiscal deficit for 2024-25 is 4.8% of GDP, and the 2025-26 fiscal deficit is estimated at 4.4% of GDP. For 2025-26, total expenditure is ₹50.65 lakh crore, receipts other than borrowings ₹34.96 lakh crore, net tax receipts ₹28.37 lakh crore and gross market borrowings ₹14.82 lakh crore. Capital expenditure is ₹11.21 lakh crore (3.1% of GDP), against about ₹10.18 lakh crore in the 2024-25 Revised Estimate. Static fact: the Annual Financial Statement, the core Budget document, is mandated by Article 112 of the Constitution; Demands for Grants by Article 113; and the Finance Bill by Article 110(a).
Key facts
- Date / place
- 1 Feb 2025, Parliament, New Delhi
- Fiscal deficit
- 4.8% of GDP (RE 2024-25); 4.4% (BE 2025-26)
- Total expenditure 2025-26
- ₹50.65 lakh crore
- Receipts other than borrowings
- ₹34.96 lakh crore; net tax ₹28.37 lakh crore
- Capex 2025-26
- ₹11.21 lakh crore (3.1% of GDP)
- Gross market borrowings
- ₹14.82 lakh crore
- Four engines
- Agriculture, MSMEs, investment, exports
- Constitution
- AFS: Art. 112; Demands for Grants: Art. 113; Finance Bill: Art. 110(a)
Practice MCQs 5 questions
What fiscal deficit target for 2025-26 (as a share of GDP) was announced in the Union Budget presented on 1 February 2025?
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Correct answer: B — 4.4 per cent
Budget speech (para 113): the fiscal deficit for 2025-26 is estimated to be 4.4 per cent of GDP.
According to the Union Budget 2025-26, what is the Revised Estimate of the fiscal deficit for 2024-25?
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Correct answer: C — 4.8 per cent of GDP
Budget speech (para 111): the Revised Estimate of the fiscal deficit is 4.8 per cent of GDP.
What capital expenditure did the Union Budget 2025-26 provide for 2025-26?
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Correct answer: D — ₹11.21 lakh crore
PIB Highlights (1 Feb 2025): capex is ₹11.21 lakh crore (3.1% of GDP). ₹10.18 lakh crore is the 2024-25 Revised Estimate and ₹14.82 lakh crore is gross market borrowings.
Which Budget document is mandated by Article 112 of the Constitution of India?
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Correct answer: A — Annual Financial Statement
Key to Budget Documents 2025-26: the Annual Financial Statement, Demands for Grants and Finance Bill are mandated by Articles 112, 113 and 110(a) respectively; Budget at a Glance is an explanatory document.
Consider the following statements about Union Budget documents: 1. Demands for Grants are mandated by Article 113 of the Constitution. 2. The Finance Bill is mandated by Article 110(a) of the Constitution. Which of the statements given above is/are correct?
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Correct answer: C — Both 1 and 2
Key to Budget Documents 2025-26: the AFS, Demands for Grants and Finance Bill are mandated by Articles 112, 113 and 110(a) respectively. Both statements are correct. Answer: Both 1 and 2.