The Indian government's accounts may see a slightly reduced fiscal deficit for the recently ended financial year in absolute terms, according to an official with knowledge of the matter who spoke on condition of anonymity.
During the interim budget, the government lowered its fiscal deficit target to 5.8% in its revised estimates for FY24 and announced a target of 5.1% for FY25.
In absolute terms, this comes up to Rs 17.34 lakh crore. As of February, the fiscal deficit reached Rs 15 lakh crore of the total target.
In terms of capex, it is expected that the government will meet its revised budget estimates of Rs 9.5 lakh crore.
The government expenditure so far in FY25 has not slowed down, owing to the model code of conduct enforced during Lok Sabha polls, the official quoted above said.
The upcoming full budget is expected to face headwinds from quarters such as volatility in global oil prices, geopolitical tensions and resuming global trade flows as recession fears recede.
A direct impact of oil prices is not seen on the budget as of now and the budget is also cushioned to absorb a certain level of global volatility, the official said.
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