On the revenue side, the Budget has pegged an 11 percent rise in tax revenue at Rs 25.84 trillion, up from Rs 23.27 trillion in FY24 (10.9 percent growth) and Rs 20.98 trillion or 16.2 percent growth over the previous fiscal. It also expects Rs 1.5 trillion in dividends and profits this fiscal, marginally down from Rs 1.54 trillion in FY24. At this the share of non-tax revenue to tax revenue will rise to 4 percent from 3.76 percent of the total. The budget has also pegged a lower Rs 50,000 crore from asset sales, up from Rs 30,000 crore in FY24.The Budget sees the primary deficit coming down to 1.4 percent from 2 percent and revenue deficit at 1.8 percent from 2.6 percent. The populist schemes will eat up Rs 4.28 trillion of the Budget or 1.3 percent of GDP, down from Rs 4.4 trillion or 1.5 percent in FY24. In the pandemic year of FY21, the subsidy bill was Rs 7.8 trillion or 3.8 percent of GDP. It expects nominal GDP grow 10.5 percent up from 9.6 percent in FY24 and real growth around 7 percent, down from 8.2 percent notched up in FY24.Despite many populist measures, the Budget maintains the capex push in absolute terms allocating Rs 11.1 trillion, up 16.9 percent over FY24 when it was Rs 9.5 trillion or a 28.4 percent growth over the previous fiscal. The size of the Budget has increased by 7.3 percentage points to Rs 48.2 trillion in FY25, which in FY24 was Rs 44.9 trillion, or 7.1 percent over the previous fiscal. In FY20, this was Rs 26.9 trillion.In another sign of the strengthening fiscal position, the Budget seeks to lower the debt to GDP ratio this fiscal from 58.1 to 56.8. These ratios stood at a high of 61.5 in FY21, up from 52.3 in FY20.
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