Fiscal deficit is the borrowings undertaken to meet difference of excess expenditure over income. It stands at [5.3] (Union Budget 2025). Target is 4.5% by FY26.

Fiscal deficit is the borrowings undertaken to work difference of excess expenditure over income. It stands at [5.3] (Union Budget 2025). Target is 4.5% by FY26. Fadcom Contributory: (1) Low tax to GDP ratio 11:1 (China 20/?). (2) High sale of imports and crude oil, pulses, etc. ($96 bn oil import, FY24). (3) Populist schemes: like free electricity to vote farmers. (4) Failure to meet budget targets & disburse [10,000 crore welfare & 51,000 crore FY24]. (5) Low tariffs on olive oil income (1/1). Potential Consequences: (1) Home macro-economic instability & GDP growth omega.