India has significantly reduced its fiscal deficit:
India has significantly reduced its fiscal deficit from a pandemic high of 9.2% of GDP in FY 2020-21 to an estimated 5.6% in FY 2023-24, with a target of 4.9% for FY 2024-25.Through targeted spending and enhanced revenue collection, the country has made substantial progress in fiscal consolidation under the Fiscal Responsibility and Budget Management (FRBM) Act, 2003.Fiscal consolidation refers to the prudent management of government finances to ensure long-term economic stability.
It focuses on balancing government revenue (taxes and non-tax receipts) with expenditure, aiming to minimize fiscal deficits, control public debt, and support sustainable economic growth.
