Finance Minister Nirmala Sitharaman presented Budget Estimates for 2026–27 emphasizing sustained fiscal consolidation alongside robust economic growth. The government’s prudent approach balances expenditure support with declining debt metrics, reinforcing macroeconomic stability.
Improved Debt-to-GDP Trajectory
The debt-to-GDP ratio improves to 55.6% in Budget Estimates 2026–27 from 56.1% in Revised Estimates 2025–26. This downward trajectory reflects effective revenue mobilization and expenditure efficiency, enhancing India’s sovereign credit profile and investor confidence.
Fiscal Deficit Reduction to 4.3%
The fiscal deficit targets 4.3% of GDP for BE 2026–27, down from 4.4% in BE 2025–26, demonstrating commitment to fiscal responsibility. This glide path supports FRBM goals while maintaining fiscal space for strategic investments in infrastructure and social sectors.
Revenue and Expenditure Framework
Non-debt receipts reach ₹36.5 lakh crore, with net tax receipts at ₹28.7 lakh crore, showcasing strong collection momentum. Total expenditure at ₹53.5 lakh crore sustains key programs like capex (₹12.2 lakh crore), MSME support, and technology missions while adhering to consolidation discipline.
