In the fiscal year 2023, India’s fiscal deficit was recorded at 6.4% of its Gross Domestic Product (GDP), amounting to ₹17.86 trillion. This figure represents the gap between the government’s revenue and expenditure, highlighting the borrowing required to finance this shortfall. India's primary deficit, excluding interest payments, stood at ₹8.5 trillion, roughly 3% of GDP. Additionally, the revenue deficit, which illustrates the difference between revenue receipts and revenue expenditure, amounted to ₹11.4 trillion, or about 4.1% of GDP.

To address these deficits, the government has implemented strategies focused on reducing specific expenditures while enhancing revenue through indirect taxes and strategic disinvestment. Nonetheless, the high public debt remains a concern, with the debt-to-GDP ratio projected to remain above 60% for 2023. Economists suggest that narrowing the fiscal deficit to around 4% over the next five years would promote sustainable development while supporting necessary social programs.