Budget 2025: Govt cuts borrowing target to ₹11.54 lakh crore for 2025-26 fiscal on back of improved tax collection

However, for the current 2024-25 financial year, the gross market borrowings were revised upwards to ₹14.82 lakh crore in comparison to the estimated ₹14.01 lakh crore for FY25.

"Coming to 2025-26, the total receipts other than borrowings and the total expenditure are estimated at ₹34.96 lakh crore and ₹50.65 lakh crore respectively. The net tax receipts are estimated at ₹28.37 lakh crore," Nirmala Sitharaman said during her Budget speech.

The government borrows by issuing dated securities to meet its fiscal deficit target.

The fiscal deficit is estimated to be 4.4% of GDP for FY26, compared to the fiscal deficit projected at 4.8% of the GDP for the current financial year.

"To finance the fiscal deficit, the net market borrowings from dated securities are estimated at ₹11.54 lakh crore. The balance financing is expected to come from small savings and other sources. The gross market borrowings are estimated at ₹14.82 lakh crore," she said.

In absolute terms, the fiscal deficit is pegged at ₹15,68,936 crore for the 2025-26 fiscal.