What is the targeted Fiscal Deficit for Assam in the 2025-26 budget as a percentage of GSDP?

The correct answer is 3.7%. Key Points The fiscal deficit for 2025-26 is targeted at 3.7% of the GSDP, which amounts to Rs 27,398 crore. Fiscal deficit is the excess of total expenditure over total receipts (excluding borrowings), representing the total borrowing requirements of the government. The target of 3.7% is a reduction from the revised estimate of 5.7% recorded in the 2024-25 financial year. A portion of the borrowing limit (0.5%) is often tied to states undertaking specific power sector reforms . Maintaining a manageable fiscal deficit is essential for a state's long-term financial health and creditworthiness. Additional Information 3.5%: This is the standard fiscal deficit limit set by the Central Government for states, intended to ensure fiscal discipline across the country. 5.7%: This was the Revised Estimate (RE) for Assam's fiscal deficit in 2024-25, which exceeded the initial budget estimate of 3.5%. 0.8%: This represents the Revenue Deficit as a percentage of GSDP at the revised estimate stage in 2024-25. Primary Deficit: This is the fiscal deficit minus interest payments; for Assam in 2025-26, it is targeted at 2.2% of GSDP .