Prudence path: FY27 fiscal deficit pegged at 4.3% of GDP

Continuing on the path of fiscal consolidation, Finance Minister Nirmala Sitharaman on Sunday pegged fiscal deficit at 4.3 per cent of GDP for the next fiscal as against 4.4 per cent for the financial year ending March 2026.

- PTI

“Government has been delivering on our fiscal commitments consistently without compromising on social needs. To strive towards accepted standards of fiscal management, in Budget 2025-26, I had indicated that the Central Government would target reaching a debt-to-GDP ratio of 50A+1 per cent by 2030-31," she said while announcing Budget 2026-27 in the Lok Sabha.

In line with this, she said, the debt-to-GDP ratio is estimated to be 55.6 per cent of GDP in Budget Estimate (BE) 2026-27, compared to 56.1 per cent of GDP in Revised Estimate (RE) 2025-26.