New Delhi, May 31 (IANS): India's fiscal deficit for the financial year ended March 31 worked out to 5.6 per cent of GDP, which is lower than the full-year target of 5.8 per cent, official data released on Friday showed.

A lower fiscal deficit reflects stronger macroeconomic fundamentals as the government needs to borrow less which leaves more money in the banking system for loans to corporates and consumers to spur growth.

A smaller fiscal deficit also helps to keep inflation in check.

The fiscal deficit came in at Rs 16.54 lakh crore, or 95.3 per cent of the budget estimate, even as the government continued to step up investment expenditure on big infrastructure projects in the highways, railways and ports sectors to accelerate economic growth.

The strategy has worked with the Indian economy clocking a robust 8.2 per cent growth rate for the financial year 2023-24 to keep its tag as the fastest growing economy amid the global slowdown.

The official data show that net tax receipts for 2023-24 exceeded the projected target for the year to touch the Rs 23.27 lakh crore mark, reflecting the higher level of economic activity in the country.

Total expenditure came in at Rs 44.43 lakh crore or 99 per cent of the targeted spend for the year.