Govt set to meet fiscal deficit target for FY25 as capex lags: Economists

The government is expected to exceed its fiscal deficit consolidation target for FY25 due to slower-than-budgeted public capex in an election year, closing at 4.8% of GDP. For FY26, the fiscal deficit is projected to achieve the target of below 4.5% of GDP, with substantial RBI dividends aiding the target, despite weak growth and expenditure cuts.

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