Union Budget 2024: Where does the govt get its money, where does it go?

India’s fiscal deficit target has been cut to 4.9% of the gross domestic product for the financial year 2024-’25 from 5.1% estimated in the interim Budget in February, Union Finance Minister Nirmala Sitharaman said on Tuesday.

There is a fiscal deficit when the government’s expenditure is more than the revenue it generates in a given financial year.

The fiscal deficit was 5.6% of the gross domestic product in the financial year 2023-’24.

The gross borrowings are estimated to be Rs 14.01 lakh crore and the net market borrowings through dated securities are expected to be Rs 11.63 lakh crore, Sitharaman said in her Union Budget speech on Tuesday.