The Central government is confident in meeting its Budget Estimates for 2025-26 without revenue shortfalls, aiming to achieve a fiscal deficit of 4.4% of GDP, equivalent to Rs 15.69 lakh crore, Minister of State for Finance Pankaj Chaudhary announced in the Rajya Sabha today.
Chaudhary outlined robust financial support for states, with Rs 25.01 lakh crore allocated for 2025-26 through Finance Commission grants, Centrally Sponsored Schemes, and special assistance loans for capital expenditure. This underscores the government’s commitment to fiscal consolidation while bolstering state economies.
Addressing other concerns, Chaudhary reported that Public Sector Banks (PSBs) are operating at 96% staffing capacity as of March 31, 2025, with 1,48,687 employees recruited over the past five years (2020-25) and 48,570 more hires planned for 2025-26. Attrition, primarily due to retirements, remains manageable.
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On health insurance, Chaudhary noted that the Insurance Regulatory and Development Authority of India (IRDAI) mandates cashless claim authorizations within one hour of request and final discharge approvals within three hours, per a May 2024 circular. In 2023-24, 58.39% of claims by count and 66.16% by amount were settled cashlessly. Additionally, 450 hospitals were onboarded to the National Health Claims Exchange (NHCX) by March 28, 2025.
Chaudhary also highlighted the Securities and Exchange Board of India’s (SEBI) crackdown on market violations, with enforcement actions against 886 entities from April 2024 to June 2025 for breaching the Prohibition of Fraudulent and Unfair Trade Practices Regulations, 2003. Enhanced surveillance, data analytics, and digital forensics tools are being deployed to curb manipulations.
The government’s fiscal strategy, supported by strong revenue projections and structural reforms, aims to maintain economic stability amid global challenges, with a focus on reducing the debt-to-GDP ratio to 50% by 2031.
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