FY23 fiscal deficit pegged at 6.4% of GDP

The fiscal deficit for the financial year 2022-2023 has been pegged at 6.4% of the GDP, Finance minister Nirmala Sitharaman announced.

The government had projected a fiscal deficit of 6.8 percent for the current fiscal and has been revised to 6.9%. States will be allowed a fiscal deficit of 4% of GSDP in the next fiscal year.

Higher tax collections so far in the current fiscal have ensured that the government meets the target comfortably.


Even though expenses have gone up under a few heads like extension in free food grains regime and fertilizer subsidy, the higher tax collection more than makes up for that.

The government relaxed its fiscal glide path in the last Budget at a time when revenues were squeezed and expenditure went up.

It has kept a target of a 4.5% fiscal deficit by FY26.