New Delhi, Feb. 1 -- Union finance minister Nirmala Sitharaman pegged the fiscal deficit target for 2025-26 at 4.4% of gross domestic product (GDP), down from 2024-25's 4.8%. This marks the conclusion of a crucial post-pandemic fiscal consolidation period that began with the Union Budget 2021-22. when the Centre committed to reducing the fiscal deficit to below 4.5% of GDP by FY26.

The fiscal deficit cut is mainly on account ofthe 40 basis point reduction in expenditure and10 basispoint increase in receipts, which is a reflection of the government's ongoing effort to strike the fiscal balance amid the challenges in the economy. One basis point is one-hundredth of one percentage point.







After reaching a high of 9.16% in 2020-21 due ...