Highlights

  • Fiscal deficit for FY27 projected at 4.3% of GDP
  • Rs 1.4 lakh crore tax devolution to states
  • Net tax receipts estimated at Rs 28.7 lakh crore

Latest news

Poco X8 Pro Max Review: Big Battery, Bigger Ambitions

Poco X8 Pro Max Review: Big Battery, Bigger Ambitions

Trump labels NATO allies 'cowards' over lack of military support against Iran

Trump labels NATO allies 'cowards' over lack of military support against Iran

Premium petrol price up Rs 2, industrial diesel up Rs 22; no change in normal petrol, diesel rates

Premium petrol price up Rs 2, industrial diesel up Rs 22; no change in normal petrol, diesel rates

'People have the right to criticise judgments,' says Supreme Court

'People have the right to criticise judgments,' says Supreme Court

LPG crunch continues, supplies rationalised for commercial users

LPG crunch continues, supplies rationalised for commercial users

Sri Lanka rejects US request to station warplanes, asserts neutrality

Sri Lanka rejects US request to station warplanes, asserts neutrality

Delhi on high alert ahead of Eid; heavy security in Dwarka

Delhi on high alert ahead of Eid; heavy security in Dwarka

iQOO Z11x 5G Review: The best budget phone under 20K?

iQOO Z11x 5G Review: The best budget phone under 20K?

Union Budget: FM Sitharaman pegs fiscal deficit lower at 4.3 pc of GDP for 2026-27

Finance Minister Nirmala Sitharaman in Budget 2026-27 projects fiscal deficit at 4.3% of GDP, allocates Rs 1.4 lakh crore to states, and to implement new Income Tax Act from April 1.

Union Budget: FM Sitharaman pegs fiscal deficit lower at 4.3 pc of GDP for 2026-27

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.

"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 50±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.

A declining debt-to-GDP ratio will gradually free up resources for priority sector expenditure by reducing the outgo on interest payments, she said.

Observing that one of the main operational instruments for debt targeting is the fiscal deficit, she said, "I am happy to inform this august House that I have fulfilled my commitment made in FY 2021-22 to reduce fiscal deficit below 4.5 per cent of GDP by 2025-26. In RE 2025-26, the fiscal deficit has been estimated at par with the BE of 2025-26 at 4.4 per cent of GDP."

In line with the new fiscal prudence path of debt consolidation, she said, the fiscal deficit in BE 2026-27 is estimated to be 4.3 per cent of GDP.

Fiscal deficit in absolute terms works out to be Rs 16,95,768 crore for FY27.

The general government debt-to-GDP ratio was 85 per cent in 2024, which included central government debt of 57 per cent.

The government is committed to keep fiscal deficit in each year (from FY 2026-27 till FY 2030-31) such that the central government debt is on a declining path to attain a debt-to-GDP level of about 50±1 per cent by March 31, 2031, from the current level of 55.6 per cent.

A fiscal deficit of 3-4 per cent is considered comfortable and a desirable target for a growing, developing economy like India, aiming to balance economic expansion with financial stability.

To finance the fiscal deficit, she said, the net market borrowings from dated securities are estimated at Rs 11.7 lakh crore.

"The balance financing is expected to come from small savings and other sources. The gross market borrowings are estimated at Rs 17.2 lakh crore," she said.

ADVERTISEMENT

Up Next

Union Budget: FM Sitharaman pegs fiscal deficit lower at 4.3 pc of GDP for 2026-27

Union Budget: FM Sitharaman pegs fiscal deficit lower at 4.3 pc of GDP for 2026-27

Premium petrol price up Rs 2, industrial diesel up Rs 22; no change in normal petrol, diesel rates

Premium petrol price up Rs 2, industrial diesel up Rs 22; no change in normal petrol, diesel rates

India's GDP expected to register over 8 pc growth in Sep-Dec: Report

India's GDP expected to register over 8 pc growth in Sep-Dec: Report

Govt announces seven measures to help boost exports

Govt announces seven measures to help boost exports

RBI keeps interest rates on hold after US trade deal boosts outlook

RBI keeps interest rates on hold after US trade deal boosts outlook

RBI proposes to compensate customers up to Rs 25,000 loss due to fraud

RBI proposes to compensate customers up to Rs 25,000 loss due to fraud

ADVERTISEMENT

editorji-whatsApp

More videos

RBI raises GDP growth projection of Q1, Q2 of FY27

RBI raises GDP growth projection of Q1, Q2 of FY27

RBI pauses rate cuts, retains interest rate at 5.25 pc

RBI pauses rate cuts, retains interest rate at 5.25 pc

Rupee jumps 122 paise to close at 90.27 against US dollar on India-US trade deal

Rupee jumps 122 paise to close at 90.27 against US dollar on India-US trade deal

Stock markets cheer India-US trade deal: Sensex, Nifty surge 2.5 pc

Stock markets cheer India-US trade deal: Sensex, Nifty surge 2.5 pc

UPI transactions hit record high of Rs 230 lakh crore in 2025-26 till Dec: Govt

UPI transactions hit record high of Rs 230 lakh crore in 2025-26 till Dec: Govt

Explained: India-US trade deal, tariffs and trade benefits

Explained: India-US trade deal, tariffs and trade benefits

Trade deal with US adds momentum to India's growth ambition: Industry leaders

Trade deal with US adds momentum to India's growth ambition: Industry leaders

Rupee jumps 119 paise to 90.30 against the US dollar on India-US trade deal

Rupee jumps 119 paise to 90.30 against the US dollar on India-US trade deal

President Trump announces US-India trade deal, lowers tariffs from 25 pc to 18 pc

President Trump announces US-India trade deal, lowers tariffs from 25 pc to 18 pc

Stock markets cheer India-US trade deal: Sensex jumps over 5 pc; Nifty nears all-time high

Stock markets cheer India-US trade deal: Sensex jumps over 5 pc; Nifty nears all-time high

Editorji Technologies Pvt. Ltd. © 2022 All Rights Reserved.