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      Question

      What fiscal deficit target has the Indian government set

      for FY25 as a percentage of GDP, and what is one reason for the lower deficit in H1 FY25?
      A 5.0%, due to increased exports Correct Answer Incorrect Answer
      B 6.0%, due to higher GST collections Correct Answer Incorrect Answer
      C 4.9%, due to early RBI dividends and reduced capital expenditure Correct Answer Incorrect Answer
      D 3.5%, due to decreased government spending Correct Answer Incorrect Answer
      E 4.0%, owing to higher disinvestment proceeds Correct Answer Incorrect Answer

      Solution

      The Indian governmentā€™s fiscal deficit target for FY25 is 4.9% of GDP. The fiscal deficit for H1 FY25 was lower due to early RBI dividends and a year-on-year decline in capital expenditure.

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