In May, the Indian government reported a fiscal surplus of around Rs 1.6 trillion and a revenue surplus of Rs 2 trillion, driven by higher-than-expected surplus transfers from the RBI, dividends from PSBs, robust tax revenues, and reduced capital expenditures. This positions the government well to meet or exceed fiscal deficit targets set in the interim Budget for 2024-25. Despite political pressures and coalition demands, the government aims to maintain a fiscal deficit of 5.1% of GDP for 2024-25, with a goal of reducing it to 4.5% in the next fiscal year.
Government Reports Strong Fiscal Surplus in May Amid High Revenues
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