FX.co ★ India Sets Fiscal Deficit Target of 4.3% for FY 2026–27

The Indian government has set a fiscal deficit target of 4.3% of GDP for the fiscal year 2026–27, aiming for a gradual fiscal consolidation while continuing to invest in crucial growth sectors. During the Union Budget announcement on Sunday, Finance Minister Nirmala Sitharaman emphasized that the target strikes a balance between sustaining economic growth and ensuring the stability of public finances. The government has planned for a total expenditure of Rs 53.5 lakh crore in 2026–27, demonstrating a commitment to key initiatives within the framework of fiscal prudence. Regarding revenue, non-debt receipts are projected at Rs 36.5 lakh crore for the fiscal year, with the Centre’s net tax receipts anticipated to be Rs 28.7 lakh crore. The Indian economy is projected to grow at a rate of 7.4% in the current financial year, while inflation is expected to remain around 2%. The fiscal deficit for this year is anticipated to be 4.4% of GDP.