Economic Affairs Secretary Ajay Seth has explained that the Union Budget for FY25 assumed a nominal GDP growth rate of 10.5% to avoid a larger fiscal deficit, emphasizing fiscal prudence. He stated that a higher growth assumption would have necessitated projecting higher revenues, which, if unrealized, could have led to a larger fiscal deficit.

The Bank of Canada on Wednesday trimmed its key interest rate by 25 basis points for the second month in a row, bringing it to 4.5%, and said more reductions in borrowing costs were likely if inflation continued to cool in line with forecasts.

The Centre has lowered its gross fiscal deficit (GFD) to GDP ratio target for FY25 to 4.9% from the 5.1% target announced during the interim budget in February. This is also lower than the provisional actual estimate of 5.6% for FY24. Nirmala Sitharaman said that the government plans to bring the GFD to GDP ratio below 4.5% during FY26.

Economic Survey 2023-24 pegs India’s GDP growth rate for FY25 at 6.5-7% for FY25 amid global challenges which may impact exports. This is lower than RBI's projection of 7.2%. It further stated that the Indian economy needs to generate 7.85mn annually in the non-farm sector to cater to the rising workforce and productivity in the agriculture sector also needs to be improved.

The Bank of Canada on Wednesday trimmed its key interest rate by 25 basis points for the second month in a row, bringing it to 4.5%, and said more reductions in borrowing costs were likely if inflation continued to cool in line with forecasts.