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GOVERNMENT OF INDIA
Statement on half yearly review of the trends in receipts
and expenditure in relation to the budget at
the end of the financial year 2024-25
and
Statement explaining deviation in meeting the obligations
of the Government under the Fiscal Responsibility and
Budget Management Act, 2003
(As required under Section 7(1) and Section 7(3)(b) of the
Fiscal Responsibility and Budget Management Act, 2003)
Ministry of FinanceCONTENTS
Page
Macroeconomic backdrop 1
Review of trend in Receipts and Expenditure 2
Key fiscal indicators 2
Receipts 3
Expenditure 6
Deficit 8
Statement of deviation prepared as per the Section 7(3)(b) of the FRBM 9
Act, 2003
Conclusion 111. Macro-Economic Backdrop
1. India’s economic growth, measured by growth in Gross Domestic Product (GDP) at
constant (2011-12) prices, has been estimated at 6.9 per cent for the second half (H2)
(October-March) of FY25, as compared to 6.1 per cent in H1 (April-September) of
FY25 and 8.9 per cent in the H2 of FY24. Growth in the gross value added at constant
basic prices for H2 of FY25 has been estimated at 6.6 per cent as against 6.2 per cent
in H1 of FY25 and 7.6 per cent in H2 of FY24.
2. In the second half of FY25, the inflation rate based on the Consumer Price Index
(Combined) was 4.7 per cent, marking a decline from 5.2 per cent recorded during the
same period in FY24, though slightly up from 4.6 per cent in the first half of FY25.
Meanwhile, the Wholesale Price Index has shown an inflation rate of 2.4 per cent in
H2 of FY25, an increase from 2.1 per cent in H1 of FY25 and 0.3 per cent in H2 of
FY24.
3. Merchandise exports at current prices during H2 of FY25 stood at USD 223.9 billion,
declining marginally by 0.9 per cent over the level of USD 225.9 billion during the
corresponding period of the previous year. During H2 of FY25, merchandise imports
at current prices were USD 362.5 billion, registering a growth of 4.2 per cent, as
against the level of USD 347.9 billion in H2 of FY24. The merchandise trade deficit for
H2 of FY25 stood at USD 138.5 billion, as compared to USD 121.9 billion in H2 of
FY24.
4. India’s current account deficit declined to 0.6 per cent of GDP (USD 23.3 billion) during
FY25 from 0.7 per cent of GDP (USD 26.0 billion) in the previous year, primarily due
to higher net invisibles receipts.
5. Direct investment to India stood at USD 13.6 billion during H2 of FY25, vis-à-vis USD
16.4 billion in the corresponding period of the previous year. Net foreign portfolio
outflows were USD 18.1 billion in H2 of FY25, as compared to an inflow of USD 23.4
billion in the corresponding period of FY24. Net foreign institutional investment
outflows stood at USD 18.3 billion in H2 of FY25 vis-à-vis inflows of USD 23.3 billion
in H2 of FY24.
6. India’s foreign exchange reserves stood at USD 668.3 billion at the end of March 2025
as compared to USD 646.4 billion at the end of March 2024. The average exchange
rate was ₹85.6 per USD during H2 of FY25 as compared to ₹83.1 per USD in the
corresponding period of the previous year.
12. Review of Trends in Receipts and Expenditure in FY 2024-25
7. In FY 2024-25, the Fiscal Deficit had initially been budgeted at ₹16.13 lakh crore or 4.9
per cent of GDP. This was 70 basis points lower than the actuals (Provisional) of FY
2023-24 (5.6 per cent of GDP). The BE 2024-25 target for Fiscal deficit was revised to
4.8 per cent of GDP in RE 2024-25. In this regard, a statement of deviation explaining
the reasons for the deviation and the path of return to annual prescribed targets, as per
the provisions of Section 4(5) of the FRBM Act 2003, was included in the Medium-
Term Fiscal Policy cum Fiscal Policy Strategy Statement (MTFP cum FPSS) that
was laid in Parliament along with the Union Budget for FY 2024-25.
8. Fiscal Deficit in FY 2024-25 (Provisional) stood at ₹15.77 lakh crore, which was in line
with RE 2024-25 target of 4.8 per cent of GDP. Total Revenue Receipts (Provisional)
were ₹30.36 lakh crore at the end of FY 2024-25 against ₹27.29 lakh crore in FY 2023-
24, showing an annual growth of 11.3 per cent. Tax Revenue (Net to Centre) at the
end of FY 2024-25 was ₹24.99 lakh crore while Non-Tax Revenue was ₹5.38 lakh
crore. Total Expenditure at the end of FY 2024-25 (Provisional) was ₹46.56 lakh crore
against the revised estimates of ₹47.16 lakh crore for the year (Table 1).
Table 1: Key Fiscal Indicators, FY 2024-25
BE RE Provisional Final % growth in FY
S.
Particulars 2024-25 2024-25 2024-25 2023-24 2024-25 (Prov.)
No.
(₹ in crore) over 2023-24
1 2 3 4 5
1. Revenue Receipts (2+3) 31,29,200 30,87,960 30,36,429 27,29,036 11.3%
2. Tax Revenue (Net) 25,83,499 25,56,960 24,98,885 23,27,251 7.4%
3. Non- Tax Revenue 5,45,701 5,31,000 5,37,544 4,01,785 33.8%
4. Capital Receipts (5+8) 16,91,312 16,28,527 16,19,088 17,14,411 -5.6%
Non- Debt Capital Receipts
5. 78,000 59,000 41,818 59,768 -30.0%
(6+7)
6. Recovery of Loans 28,000 26,000 24,616 26,646 -7.6%
7. Other Receipts 50,000 33,000 17,202 33,122 -48.1%
2BE RE Provisional Final % growth in FY
S.
Particulars 2024-25 2024-25 2024-25 2023-24 2024-25 (Prov.)
No.
(₹ in crore) over 2023-24
Borrowings and other
8. 16,13,312 15,69,527 15,77,270 16,54,643 -4.7%
liabilities
9. Total Receipts (1+4) 48,20,512 47,16,487 46,55,517 44,43,447 4.8%
10. Revenue Expenditure 37,09,401 36,98,058 36,03,510 34,94,252 3.1%
10(i). - of which Interest Payments 11,62,940 11,37,940 11,16,343 10,63,872 4.9%
- of which Grants for
10(ii). 3,90,778 2,99,891 2,72,775 3,03,916 -10.2%
creation of Capital Assets
11. Capital Expenditure 11,11,111 10,18,429 10,52,007 9,49,195 10.8%
12. Total Expenditure (10+11) 48,20,512 47,16,487 46,55,517 44,43,447 4.8%
13. Revenue Deficit (10-1) 5,80,201 6,10,098 5,67,081 7,65,216 -25.9%
Effective Revenue Deficit
14. 1,89,423 3,10,207 2,94,306 4,61,300 -36.2%
{(13-10(ii)}
15. Fiscal Deficit {12-(1+5)} 16,13,312 15,69,527 15,77,270 16,54,643 -4.7%
16. Primary Deficit {(15-10(i)} 4,50,372 4,31,587 4,60,927 5,90,771 -22.0%
Source: Controller General of Accounts and Budget Documents.
Notes: 1. The Figures are on net basis as in Budget Documents;
2. Actuals for FY 2024-25 are unaudited provisional numbers and are subject to change; and
3. Individual items in the table may not sum up to the totals due to rounding off.
2.1 Receipts
2.1.1 Gross Tax Revenue
9. In BE 2024-25, Gross Tax Revenue (GTR) was estimated at ₹38.40 lakh crore. It was
revised to ₹38.53 lakh crore in RE 2024-25. GTR for FY 2024-25 (Provisional) was
₹37.95 lakh crore, thereby showing a year-on-year growth of 9.5 per cent over FY
2023-24.
32.1.2 Revenue receipts
10. Revenue receipts of the Centre comprise of Tax Revenue (Net to Centre) and Non-
Tax Revenue. In BE 2024-25, total revenue receipts were estimated at ₹31.29 lakh
crore and the same was revised to ₹30.88 lakh crore in RE 2024-25. The Revenue
Receipts for FY 2024-25 (Provisional) were ₹30.36 lakh crore comprising of Tax
Revenue (Net to Center) of ₹24.99 lakh crore and Non-Tax revenue of ₹5.38 lakh
crore.
2.1.3 Direct Taxes
11. The main components of Direct Tax receipts are Corporation tax and Taxes on
Income. Direct Taxes were estimated to be ₹22.07 lakh crore in BE 2024-25, which
was revised to ₹22.37 lakh crore in RE 2024-25. Direct Tax receipts for FY 2024-25
(Provisional) were ₹22.24 lakh crore thereby recording growth of 13.6 per cent over
FY 2023-24 (₹19.57 lakh crore).
2.1.3.1 Corporation Tax
12. Corporation Tax receipts in BE 2024-25 were estimated at ₹10.20 lakh crore. This was
revised slightly downwards to ₹9.80 lakh crore in RE 2024-25. As per the provisional
numbers, Corporation tax collection for FY 2024-25 (Provisional) was ₹9.87 lakh crore
thereby recording a growth of 8.3 per cent over FY 2023-24.
2.1.3.2 Taxes on Income
13. Taxes on Income are the other major sub-component of Direct Taxes. In BE 2024-25,
Taxes on Income were estimated to be ₹11.87 lakh crore (₹11.50 lakh crore from
Taxes on Income other than Corporation Tax and ₹37,000 crore from Securities
Transaction Tax). This was revised upward to ₹12.57 lakh crore in RE 2024-25. As
per provisional estimates for FY 2024-25, the receipts under this head were ₹12.35
lakh crore, comprising ₹11.83 lakh crore from Taxes on Income other than Corporation
Tax and ₹52,197 crore from STT. Thus, the receipts of the Government under this
4head registered a growth of 18.2 per cent over actual receipts of FY 2023-24 (₹10.45
lakh crore).
2.1.4 Indirect Taxes
14. Indirect tax collection for FY 2024-25, mainly comprising of Goods and Services Tax
(GST), Customs and Union Excise Duties, was estimated at ₹16.33 lakh crore. Against
the budgeted target, the actual receipts for FY 2024-25 (Provisional) were ₹15.72 lakh
crore. This was 4.2% higher than the actuals for FY 2023-24 (₹15.09 lakh crore).
2.1.4.1Goods and Services Tax
15. GST for the Central Government comprises of CGST, IGST, UTGST and GST
Compensation cess. GST collection was budgeted at ₹10.67 lakh crore for FY 2024-
25 and kept at the same level in RE 2024-25. The total collection under GST in FY
2024-25 (Provisional) was ₹10.32 lakh crore. It indicates the growth of 7.2 per cent
over the GST collections of ₹9.63 lakh crore in FY 2023-24.
2.1.4.2 Customs
16. The Budget for 2024-25 estimated tax receipts from Customs at ₹2.38 lakh crore. This
was revised to ₹2.35 lakh crore in RE 2024-25. The actual (Provisional) receipts from
Customs duties stood at ₹2.33 lakh crore for FY 2024-25, which was broadly similar
to the actuals for FY 2023-24 (₹2.33 lakh crore).
2.1.4.3 Union Excise Duty
17. Union Budget 2024-25 estimated Union Excise Duty collection at ₹3.19 lakh crore,
which was revised to ₹3.05 lakh crore in RE 2024-25. Actual (Provisional) tax receipts
under Union Excise Duty were ₹3.00 lakh crore for FY 2024-25. This was 1.7% lower
than the actuals for FY 2023-24 (₹3.05 lakh crore).
2.1.5 Non-Tax Revenue
18. Non-Tax Revenues of Centre mainly comprise of interest and dividend receipts of the
Government from Public Sector Banks, Public Sector Undertakings, Reserve Bank of
India, receipts from services provided by Central Ministries and Departments such as
5the supply of Central Police Forces to various agencies, issue of passport and visa,
registration of companies, patent and license fees, royalty from off-shore oil fields,
various receipts from telecom sector, etc.
19. The Budget Estimate of 2024-25 for Non-Tax Revenue was pegged at ₹5.46 lakh
crore. It was revised at the RE stage to ₹5.31 lakh crore and actual (Provisional)
receipts of NTR were ₹5.38 lakh crore. This was 33.8% higher than the actuals for FY
2023-24 (₹4.02 lakh crore).
2.1.6 Non-Debt Capital Receipts (NDCR)
20. The main components of Non-Debt Capital Receipts (NDCR) are miscellaneous
capital receipts and receipts from the recovery of loans and advances. NDCR of the
government were budgeted at ₹78,000 crore in FY 2024-25. Out of this, ₹50,000 crore
were from miscellaneous capital receipts and ₹28,000 crore from the recovery of loans
and advances. In RE 2024-25, NDCR was revised to ₹59,000 crore. Against this, the
actual (Provisional) receipts under NDCR stood at ₹41,818 crore, of which ₹17,202
crore was realized from miscellaneous capital receipts and ₹24,616 crore were from
the recovery of loans and advances.
2.2 Expenditure
21. In BE 2024-25, the total expenditure of Union Government was estimated at ₹48.21
lakh crore which was revised to ₹47.16 lakh crore in RE 2024-25. The Actual
(Provisional) expenditure in FY 2024-25 was ₹46.56 lakh crore, recording a growth of
4.8 percent over FY 2023-24 (₹44.43 lakh crore).
2.2.1 Revenue Expenditure
22. Revenue expenditure in BE 2024-25 was estimated at ₹37.09 lakh crore. It was
revised to ₹36.98 lakh crore in RE 2024-25. Against this, total revenue expenditure
(Provisional) in FY 2024-25 was ₹36.04 lakh crore. Revenue expenditure accounted
for 77.4 per cent of Total Expenditure in FY 2024-25 as compared to 78.6 per cent in
FY2023-24. Out of ₹36.04 lakh crore of Revenue Expenditure in FY 2024-25, ₹2.73
lakh crore was on account of Grant-in-Aid for creation of capital assets.
623. In FY 2024-25, around ₹26.58 lakh crore was spent on Interest payments, Defence
Services, Pension, Major Subsidies and Grants-in-Aids to States/UTs Expenditure
(Table-2). This was higher by ₹42,297 crore when compared to FY 2023-24.
Table 2: Major Items of Revenue Expenditure
(₹ in crore)
FY Provisional Actuals
Items
2023-24 FY 2024-25
Interest Payments 10,63,872 11,16,343
Defence Service 2,90,443 2,90,769
Grants in Aid to States & UTs 6,09,677 5,89,239
Major Subsidies 4,13,542 3,88,036
Pension 2,38,328 2,73,772
Total 26,15,862 26,58,159
Source: Controller General of Accounts
2.2.2 Capital Expenditure
24. Capital expenditure (Provisional) recorded a growth of 10.8 per cent and stood at
₹10.52 lakh crore in FY 2024-25. This amounted to 3.2 per cent of GDP which was
the same as in FY 2023-24.
Table 3: Composition of Revenue, Capital and Effective Capital Expenditure
(₹ in crore)
Items 2022-23 2023-24 2024-25
1. Revenue Expenditure 34,53,638 34,94,252 36,03,510
1.1 Grant for creation of capital assets 3,06,264 3,03,916 2,72,775
2. Capital Expenditure 7,39,519 9,49,195 10,52,007
3. Effective Capital Expenditure (2+ 1.1) 10,45,783 12,53,111 13,24,782
Total Expenditure (1+2) 41,93,157 44,43,447 46,55,517
Source: Controller General of Accounts
72.3 Deficit
2.3.1 Fiscal Deficit
25. Fiscal deficit (FD) was estimated at ₹16.13 lakh crore (4.9 per cent of GDP) in BE
2024-25. It was revised downwards to ₹15.70 lakh crore (4.8 per cent of GDP) at RE
stage. Against the revised target, the actual (Provisional) fiscal deficit for FY 2024-25
was ₹15.77 lakh crore i.e. 4.8 per cent of GDP.
2.3.2 Revenue Deficit
26. Revenue Deficit (RD) for FY 2024-25 was budgeted at ₹5.80 lakh crore (1.8 per cent
of GDP). It was revised to ₹6.10 lakh crore (1.9 per cent of GDP) at RE stage. At the
end of FY 2024-25, RD (Provisional) was ₹5.67 lakh crore or 1.7 per cent of GDP.
2.3.3 Financing of deficit
27. Fiscal Deficit of ₹15.77 lakh crore (Provisional) in FY 2024-25 was mostly financed by
raising internal debt (Table–4).
Table 4: Sources of financing fiscal deficit
(₹ in crore)
2024-25 (Prov.) 2023-24 2022-23 2021-22
Fiscal Deficit 15,77,270 16,54,643 17,37,755 15,84,519
Internal Debt (Net) excluding MSS 10,80,518 16,94,935 16,10,883 13,89,530
External Assistance including 47,271 55,121 37,124 36,147
Revolving Fund
Public Account 4,47,945 (-)96,208 91,370 1,56,299
Cash Balance 1,536 794 (-)1,622 2,543
28. The Progressive Internal Debt (Gross) of the Government (excluding WMA and
Central securities against Small Savings) grew by ₹7.96 lakh crore from ₹119.67 lakh
crore at the beginning of FY 2024-25 to ₹127.63 lakh crore at the end of the financial
year. Fresh external loans of ₹1,20,901 crore were contracted and past obligations to
the tune of ₹55,438 crore were discharged. The progressive External debt (Gross) at
the end of the financial year was ₹6.32 lakh crore. Thus, External Debt (Gross) grew
by ₹65,463 crore over the course of the year.
82.4 Liabilities
29. The Government of India had a cumulative Public Debt of ₹162.87 lakh crore, at the
end of 31st March 2025. Total cumulative Government liabilities (including that of
Public Account) as on 31st March 2025 were ₹176.88 lakh crore. This was an increase
of ₹14.73 lakh crore over the course of the year (₹162.15 lakh crore at the beginning
of FY 2024-25).
2.5 Cash Management
30. The Government began FY 2024-25 with cash balance of ₹4,506 crore and ended the
financial year with a balance of ₹4,593 crore. There was an investment surplus of
₹ 78,442 crore at the end of FY 2024-25.
Statement of deviation prepared as per the provision of Section 7(3)(b) of the Fiscal
Responsibility and Budget Management (FRBM) Act, 2003 explaining the reasons for
not laying the Medium-term Expenditure Framework (MTEF) Statement, 2025.
31. Section 7(3)(b) of the FRBM Act provides that –
“Where owing to unforeseen circumstances, any deviation is made in meeting the
obligation cast on the Central Government under this Act, the Minister-in-Charge of
the Ministry of Finance shall make a statement in both Houses of Parliament
explaining-
any deviation in meeting the obligations cast on the Central Government under this
Act;
whether such deviation is substantial and relates to the actual or the potential
budgetary outcomes; and the remedial measures the Central Government proposes
to take.”
32. As per Section 3 (1B) of the FRBM Act, 2003, MTEF Statement needs to be laid in the
Parliament in the session immediately following the session of Parliament in which the
Medium-Term Fiscal Policy Statement (MTFPS), the Fiscal Policy Strategy Statement
(FPSS) and the Macro-Economic Framework Statement (MEFS) are laid.
933. The MTEF Statement 2025 is not being laid in Parliament due to the following reasons:
34. The Government while presenting the Union Budget for FY 2025-26 had informed
Parliament through the MTFPS and FPSS that rolling targets for FY 2026-27 and FY
2027-28 could not be provided mainly on account of continuing global uncertainty and
visible benefits of retaining flexibility in conducting fiscal policy operations.
35. To prepare the MTEF Statement, certain assumptions are made regarding the growth
rate of the economy, buoyancy of various taxes, trajectory of non-tax receipts of the
Government, etc. These variables are then used to estimate the overall resource
position of the Government which in turn is used to make meaningful expenditure
projections and rolling targets for the upcoming fiscal years. Since the presentation of
the Budget, the World has witnessed trade policy dislocation as well as escalating
conflicts across the Middle East. In the presence of these risks to the world economy
the required projections cannot be made with any degree of certainty.
36. Considering the above facts, medium-term projections are not feasible. However, the
government remains committed to achieving the glide path of fiscal consolidation.
Since FY 2021-22, adoption of an operationally flexible fiscal consolidation path has
served the country well. India is now set to attain the goal outlined in the Budget for
FY 2021-22 and reach fiscal deficit level below 4.5 per cent of GDP in FY 2025-26. As
indicated in the Budget Speech 2025-26, a path for fiscal consolidation for
FY 2026-27 to 2030-31 has been laid out in the Fiscal Policy Statements presented to
Parliament along with the Budget 2025-26.
37. Sans any major macro-economic disruptive exogenous shock(s), and while keeping
in mind potential growth trends and emergent development needs, the Government
would endeavour to keep fiscal deficit in each year (from FY 2026-27 till FY 2030-31)
such that the Central Government debt is on declining path to attain a debt to GDP
level of about 50±1 per cent by 31st March 2031 (the last year of the 16th Finance
Commission cycle).
105. Conclusion
38. The Government of India, realizing the headwinds that were being faced by the Global
economy had decided to continue its flexible fiscal stance in FY 2024-25. The same
was required to improve the resilience of the economy as well as to counteract the
impacts of a potential global economic downturn. While following a flexible fiscal
policy, the Government did not lose sight of the goal of achieving fiscal consolidation
through measures such as rationalization of expenditure as well as improving its
quality through higher allocation for capital expenditure
39. For FY 2024-25, the Gross Tax Revenue stood at 11.5 per cent of GDP in
FY 2024-25 and Total Expenditure in FY 2024-25 (Provisional) at 14.1 per cent of
GDP. Quality of expenditure showed an improvement with effective capital
expenditure increasing from ₹12.53 lakh crore in FY 2023-24 to ₹13.25 lakh crore in
FY 2024-25 (Provisional).
40. The Fiscal Deficit in FY 2024-25 (Provisional) at 4.8 per cent of GDP indicates fiscal
consolidation of 0.8 percentage points compared to FY 2023-24 (Fiscal Deficit of 5.6
percent). The reduction in fiscal deficit was also well aligned with better quality of
expenditure as the Revenue Deficit declined by 0.9 percentage points from 2.6 percent
in FY 2023-24 to 1.7 percent in FY 2024-25 (Provisional) and Primary Deficit from 2.0
per cent of GDP in 2023-24 to 1.4 % of GDP in 2024-25.
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