As per the revised estimates, the fiscal deficit of the Union Government for the
financial year 2023-24 is

The correct answer is 5.8%

Key Points

• The fiscal deficit represents the difference between the government's total expenditure and its total revenue (excluding borrowing).
• The fiscal deficit target for the financial year 2023-24 has been revised to 5.8% of GDP.
• This target aligns with the government's commitment to fiscal consolidation and sustainable growth.
• The fiscal deficit figure reflects the government's borrowing needs to finance its budgetary expenditures.

Additional Information

• Option 1 (5.9%): This figure is close but incorrect. It might reflect an earlier estimate or a projection that was revised later.
• Option 2 (5.1%): This figure is significantly lower than the revised estimate for the fiscal deficit. It could represent a target for a future financial year or a previous year.
• Option 4 (6.4%): This figure was closer to fiscal deficit levels during earlier years, especially in the aftermath of economic disruptions like COVID-19.
• Option 5: This option is blank and does not provide any data. It is not applicable to the question.

Important Points

• The government uses fiscal deficit as a key indicator to manage public finances and ensure economic stability.
• Fiscal consolidation involves reducing the fiscal deficit over time through measures like enhancing revenues and controlling expenditures.
• The fiscal deficit also impacts inflation, interest rates, and credit ratings, making it a crucial factor for economic policymaking.
• Maintaining a sustainable fiscal deficit is essential for achieving long-term economic growth and financial stability.