Why is it in the news?
India’s fiscal deficit reached 80.4% of target by Feb 2026.
Category: Economy
Important Points:
● Fiscal deficit = Expenditure – (Revenue + Non-debt receipts)
● Represents total borrowing requirement
● FY 2025-26 target: 4.4% of GDP (~₹15.58 trillion)
● Current: ₹12.52 trillion (till Feb)
● Lower than previous year (85.8%)
● Reported by Controller General of Accounts (CGA)
● High deficit → inflation, crowding out, debt trap
● FRBM target originally 3% (relaxed post-pandemic)
● Govt aims <4.5% by 2025-26
● Revenue deficit: shortfall in daily expenses