New Delhi, Feb 1 (IANS): Finance Minister Nirmala Sitharaman announced a reduction in the fiscal deficit target to 4.3% of GDP for 2026-27 in the Budget 2026-27 presentation.
This follows a previous commitment to reduce it to 4.4% for 2025-26 and aims to balance economic momentum and stable public finances. The government plans to borrow Rs 11.7 lakh crore for fiscal deficit funding, with total gross market borrowing set at Rs 17.2 lakh crore.
The debt-GDP ratio is projected to decrease to 55.6% in the next fiscal year, helping reduce interest payment obligations. A capital expenditure of Rs 12.2 lakh crore will focus on infrastructure projects to foster economic growth and job creation.
An Infrastructure Risk Development Fund will be established to support major projects, enhancing manufacturing in seven strategic sectors and promoting MSMEs. Sitharaman emphasized the importance of integrating India with global markets to boost exports and attract foreign investment.
