 "What is Fiscal Deficit")
Fiscal Deficit
What is Fiscal Deficit
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Latest Updates on Fiscal Deficit
Niti Aayog urges states to follow fiscal deficit norms under FRBM Act
The Fiscal Responsibility and Budget Management (FRBM) Act aims to regulate the country's debt level by restricting fiscal and revenue deficits as a percentage of GDP
 "Niti Aayog urges states to follow fiscal deficit norms under FRBM Act")
Iran war: Fiscal pressures on govt may mount next FY, say experts
A prolonged West Asia conflict could strain India's fiscal position through higher fertiliser subsidies, rising import costs and weaker revenue growth
 "Iran war: Fiscal pressures on govt may mount next FY, say experts")
A Finance Commission that questions states but spares the Union government
The Commission appreciates the Union government's fiscal restraint during the pandemic and the subsequent reduction in deficits and debt following the sharp spike seen in the pandemic year
 "A Finance Commission that questions states but spares the Union government")
Govt seeks LS nod for additional expenditure of ₹2.81 trillion in FY26
Finance Ministry seeks Parliament approval for Rs 2.01 trillion net additional FY26 spending through the second supplementary demand for grants, with allocations for subsidies and reserve funds
 "Govt seeks LS nod for additional expenditure of ₹2.81 trillion in FY26")
Govt revises fiscal deficit ratios for FY23-FY25 after GDP base year update
The fiscal deficit was earlier estimated at 4.8 per cent for FY'25, 5.63 per cent for FY'24 and 6.4 per cent for FY'23
 "Govt revises fiscal deficit ratios for FY23-FY25 after GDP base year update")
Lower FY26 nominal GDP to raise India's fiscal deficit, debt ratios
Lower nominal GDP estimates have nudged up FY26 fiscal deficit and debt ratios, implying a steeper consolidation path even as new NSO GDP data revises sectoral weights
 "Lower FY26 nominal GDP to raise India's fiscal deficit, debt ratios")
New GDP series lifts FY27 growth outlook to 7-7.4%, says CEA Nageswaran
India's GDP growth for FY27 is seen at 7-7.4% under the new series, with risks tilted upward, as strong momentum, reforms and trade deals lift the outlook
 "New GDP series lifts FY27 growth outlook to 7-7.4%, says CEA Nageswaran")
Centre's fiscal deficit at 63% of full year target at Jan-end: CGA data
The Centre estimates the fiscal deficit (the gap between expenditure and revenue) during 2025-26 at 4.4 per cent of GDP, or Rs 15.58 trillion
Finance Commission changes pose transition risks for states' fiscal balance
The 16th Finance Commission throws up a transition challenge for states facing strict fiscal limits
 "Finance Commission changes pose transition risks for states' fiscal balance")
States' fiscal arithmetic tightens in FY27; deficit seen at 3% of GDP
Ind-Ra expects states' fiscal deficit to widen to 3% of GDP in FY27 due to higher revenue spending, with SASCI-linked borrowing potentially lifting it to 3.5% of GDP
 "States' fiscal arithmetic tightens in FY27; deficit seen at 3% of GDP")
Phase out universal subsidies, target benefits better: ADB-PwC study
ADB-PwC study urges India to phase out universal subsidies, tighten Aadhaar-linked targeting and audits, and improve fiscal efficiency without hurting stability
 "Phase out universal subsidies, target benefits better: ADB-PwC study")
UP govt tables ₹9.12 trillion annual Budget with a 12.9% yearly increase
Uttar Pradesh's ₹9.12 trillion FY27 Budget ramps up infrastructure and capex, keeps the fiscal deficit below 3%, and pitches the state as India's next growth engine
 "UP govt tables ₹9.12 trillion annual Budget with a 12.9% yearly increase")
FM Sitharaman shows adequate caution in drawing up a conservative Budget
It is useful to remember that the miracle economies to our East, the so-called Asian Tigers, sustained high growth for decades by following prudent fiscal policies
 "FM Sitharaman shows adequate caution in drawing up a conservative Budget")
Fiscal policy planning: Why India needs a clearer medium-term plan
India's fiscal discipline has improved, but high debt, future spending pressures and bond-market constraints make deeper consolidation increasingly difficult
 "Fiscal policy planning: Why India needs a clearer medium-term plan")
Centre must push prudent state spending to improve general-govt debt levels
Centre must encourage prudent spending by state governments to improve general-government debt levels
 "Centre must push prudent state spending to improve general-govt debt levels")
India's trade deals are a win, but fiscal vulnerabilities are also growing
India weathered the Trump tariff shock better than expected, but high public debt and slower fiscal consolidation pose risks even as trade deals lift growth and investor sentiment
 "India's trade deals are a win, but fiscal vulnerabilities are also growing")
Direct fertiliser subsidy transfer very much on table: Expenditure secy
On Agri Stack, Expenditure Secy V Vualnam says it's progressing well; using IT, farmers will be able to choose exact fertiliser quantities needed, reducing crowding at fertiliser outlets
 "Direct fertiliser subsidy transfer very much on table: Expenditure secy")
Budget 2026 ready reckoner: Fiscal policy change amid global headwinds
To hold the fiscal deficit at 4.4% of GDP, the Centre trims spending and shifts to a debt-anchored framework for greater policy flexibility amid global risks
 "Budget 2026 ready reckoner: Fiscal policy change amid global headwinds")
Budget 2026-27: Inside the fiscal consolidation numbers and open questions
The Budget has largely eschewed political populism, even as several states are to go for Assembly elections in the coming months
 "Budget 2026-27: Inside the fiscal consolidation numbers and open questions")
16th Finance Commission retains 41% devolution, introduces GDP criterion
the 16th Finance Commission kept tax devolution at 41%, added GDP contribution as a new criterion, dropped revenue deficit grants, and pushed states towards stronger fiscal discipline
 "16th Finance Commission retains 41% devolution, introduces GDP criterion")