Centre’s fiscal deficit narrowed to 8.1 percent of the full year estimate in the first quarter of the year, compared with 25.3 percent during similar period last year, government data released on July 31 showed.

The fiscal deficit had narrowed to 3 percent in the previous fiscal, given the benefit accorded by higher-than-expected RBI dividend of Rs 2.11 lakh crore.

Revenue receipts were up 27.6 percent compared with 22.4 percent in Q1FY24, with tax revenue rising faster.

Capex utilisation was lower at 16.3 percent compared with 27.8 percent in Q1FY25 in the previous year.

The government in the Budget announced on July 23 further reduced the fiscal deficit target to 4.9 percent of the GDP compared with 5.1 percent target set in the interim Budget.

The finance minister in her Budget speech had noted that the government was steadfast in reducing the fiscal deficit further to 4.5 percent or below by FY26.

The revenue receipt target was also raised to Rs 31.3 lakh crore in FY25 compared with Rs 30 lakh crore in the interim budget.

Capex spending was kept unchanged at Rs 11.11 lakh crore.