Fiscal deficit narrowed to 17.2 percent of the full year estimate in the first four months of the year, compared with 33.9 percent during similar period in the previous year, government data released on August 30 showed.

Capex utilisation remained lower at 16.3 percent of Budget estimates between April-July 2024, compared with 23.5 percent during a similar period in the previous fiscal.

The fiscal deficit was Rs 1.61 lakh crore for the first four months of the year.

Global Ratings agency Fitch Ratings, on August 29, retained India’s BBB- rating with a stable outlook on the back of improving performance on fiscal consolidation and stronger growth outlook.

Fitch was confident of government meeting its revised fiscal deficit target of 4.9 percent in FY25.

The government, in its first Budget presented on July 23, had lowered the fiscal deficit to 4.9 percent of GDP compared with 5.1 percent in the interim Budget.

Surplus dividend from the central bank of Rs 2.11 lakh crore has helped keep fiscal deficit contained.