Budget FY27 supports growth, fiscal consolidation: Goldman Sachs

India’s medium-term macro outlook remains constructive as the Union Budget for FY27 signals continuity in capital expenditure alongside a softer fiscal drag, according toa report by Goldman Sachs.

- TBG NETWORK

The report notes that the finance minister has reaffirmed the commitment to keep central government public debt on a declining path, calling it an important signal, given India’s relatively elevated public-debt burden versus most EM peers.

The report says “the FM reaffirmed the commitment to keep central government public debt (as a share of GDP) on a declining path toward 50% (+/- 1%) by FY31 (from 55.6% target in FY27).

We see this as an important signal, given India’s relatively elevated public-debt burden versus most EM peers”