Fiscal Deficit & GDP Revision: FY23-FY25 Impact

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Mar 10, 2026 18:59

Fiscal deficit as % of GDP revised upwards for FY23-FY25 after GDP base revision. New GDP series impacts deficit figures.

Fiscal Deficit & GDP Revision: FY23-FY25 Impact

Illustration: Uttam Ghosh/Rediff.com

New Delhi, Mar 10 (PTI) The fiscal deficit as a percentage of GDP for three financial years till 2024-25 has been revised upwards following the revision in base year for calculation of GDP, the government informed Parliament on Tuesday.

As per the new GDP Series published on February 27, the fiscal deficit as a percentage of GDP works out to be 4.9 per cent for 2024-25, 5.7 per cent for 2023-24, and 6.7 per cent for 2022-23, Minister of State for Finance Pankaj Chaudhary said in a written reply in the Rajya Sabha.

The fiscal deficit was earlier estimated at 4.8 per cent for FY'25, 5.63 per cent for FY'24 and 6.4 per cent for FY'23.

In absolute term, fiscal deficit stood at Rs 15.74 lakh crore in FY'25, Rs 16.55 lakh crore in FY'24 and Rs 17.38 lakh crore in FY'23.

On February 27, 2026, the government released the new series of Gross Domestic Product (GDP) estimates with 2022-23 as the base year, replacing the previous series with a base year of 2011â12.

With the new 2022-23 base, the Nominal GDP or GDP at Current Prices is estimated at Rs 318.07 lakh crore in 2024-25 and Rs 289.84 lakh crore for 2023-24.

Fiscal deficit is the difference between the government's total expenditure and its total receipts excluding borrowing.

Source: PTI By Rediff Money Desk, New Delhi

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