Question
By the end of May 2025, the fiscal deficit stood at what
percentage of the full-year Budget Estimate (BE)?Solution
The fiscal deficit of the central government dropped to 0.8% of the Budget Estimate (BE) for FY26 by the end of May 2025, primarily due to a record dividend payout from the Reserve Bank of India (RBI). This is a sharp fall compared to the 11.9% in April 2025, reflecting improved fiscal management in the early months of the financial year.
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