Fiscal Deficit Likely To Moderate To 6.4% Of GDP: Economic Survey

This gradual decline in the Union government's fiscal deficit as a per cent of GDP is in line with the fiscal glide path envisioned by the government

Outlook Business Team

Updated on: 31 January 2023 1:14 pm

The Economic Survey for financial year 2022-23 has pegged that fiscal deficit in current financial year is likely to moderate top 6.4 per cent of the Gross Domestic Product (GDP).

“The fiscal deficit of the government, which reached 9.2 per cent of GDP during the pandemic year FY21, has moderated to 6.7 per cent of GDP in FY22 and is further budgeted to reach 6.4 per cent of GDP in FY23,” according to The Economic Survey.

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This gradual decline in the Union government's fiscal deficit as a per cent of GDP, in line with the fiscal glide path envisioned by the government, is a result of careful fiscal management supported by buoyant revenue collection over the last two years, the Survey added.