India Sets Fiscal Deficit Target of 4.3% for FY 2026–27

The Indian government has projected a fiscal deficit of 4.3% of GDP for FY 2026–27, outlining a path of gradual consolidation while maintaining spending on key growth sectors. Announcing the figures in the Union Budget on Sunday, Finance Minister Nirmala Sitharaman said the target reflects a balance between supporting economic momentum and keeping public finances stable. The government has projected total expenditure at Rs 53.5 lakh crore for 2026–27, reflecting continued support for key programmes while adhering to the fiscal consolidation path. On the revenue side, non-debt receipts are estimated at Rs 36.5 lakh crore in FY 2026–27, while the Centre’s net tax receipts are pegged at Rs 28.7 lakh crore. The Indian economy is seen growing at 7.4% in the current financial year, with inflation expected to be near 2%. The government’s fiscal deficit for the year is expected to be 4.4% of GDP.