Debt reduction key focus: FM

IT COULD COME in handy for the government which is facing a potential tax revenue shortfall compared with the Budget Estimate, and a possible dip in tax buoyancy in the near term, on account of massive the reliefs offered to taxpayers in terms of income tax and GST reductions.

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The fiscal roadmap for the next six years was presented in the Fiscal Responsibility and Budget Management (FRBM) statement unveiled with the last Budget, as per which the fiscal deficit is estimated to be 4.4% of GDP in FY26.

The minister noted that the Centre has already made progress since the post-Covid period, when debt-to-GDP had crossed 60%. "It is now on a declining path, and from the next financial year, this will be a core focus area," Sitharaman said, adding that while the fiscal deficit would remain an important indicator, debt reduction would increasingly guide policy decisions.