Finance Minister Nirmala Sitharaman set the fiscal deficit goal for the fiscal year 2025–2026 at 4.4% of GDP on Saturday when she presented the Budget 2025.

The objective for the budget deficit for 2024–2025 has been changed from 4.9% of GDP to 4.8%. The finance minister set it at 5.1% of GDP in the interim budget, which was presented on February 1st of last year.

The budget deficit goal for 2023–24 was set by the government at 5.9% of GDP. Afterwards, the budget deficit for 2023–2024 was reduced to 5.8%.

The fiscal deficit is the difference between the government’s total income and total expenditures. It serves as a gauge for the overall amount of borrowing that the government could need.

By the fiscal year 2025-26, the government hopes to reduce the budget deficit to less than 4.5% of GDP.

Parliament’s budget session started on January 31 and is scheduled to conclude on April 4. The government’s economic policies, plans for income and spending, tax changes, and other noteworthy announcements were all covered in the budget address.

“The government sees the next five years as a unique opportunity to realize development for all (Sabka Vikas) to stimulate balanced growth of all regions,” the Finance Minister said in her Budget 2025 address. The finance minister said that the world has taken notice of India’s structural changes and development achievements over the last ten years.

Speaking to the Lok Sabha on Budget 2025, Sitharaman said, “Of all the major economies, ours is the one that is expanding the quickest. The world has taken notice of our structural changes and development performance during the last ten years. During this time, trust in India’s abilities and potential has only increased. We believe that the next five years provide a special chance to realize sabka vikas and promote equitable prosperity in every area.

According to Sitharaman, this budget suggests development initiatives in around ten major sectors with an emphasis on women, farmers, the impoverished, and young people.

“In this budget, the proposed development measures span 10 broad areas, focusing on the poor, youth, farmers and women,” she said.

In order to further India’s shift to clean energy and fulfill the resolve of Vikshit Bharat (developed India), the Union Finance Minister has established a Nuclear Energy Mission.