Fiscal Deficit

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

India's fiscal discipline has improved, but high debt, future spending pressures and bond-market constraints make deeper consolidation increasingly difficult

Centre must encourage prudent spending by state governments to improve general-government debt levels

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

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

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

The Budget has largely eschewed political populism, even as several states are to go for Assembly elections in the coming months

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

Union Budget 2026-27 raises capital expenditure to ₹12.2 trn, reinforcing the govt's infrastructure-led growth strategy, even as spending in the current fiscal is expected to fall short of estimates

And bigger problems await from policy bottlenecks that the Budget has left untouched

Budget FY27 signals deeper banking reforms, possible PSB consolidation and higher borrowing, shifting the onus to RBI to manage yields and liquidity

The organising idea is clear: India is no longer trying to grow fast; it is trying to grow well

BofA Securities said the modest fiscal consolidation rests on "very realistic" revenue and expenditure assumptions, adding to the credibility of the Ministry of Finance

Aditi Nayar analyses the Budget's fiscal prudence, higher public capex via states, a 4.3 per cent deficit target, debt consolidation, and the impact of higher gross borrowings on bond yields

The economy is seen growing at 7.4 per cent in ‌the current financial year, with ​inflation likely to be near 2 per cent

The tough position that the bond market finds itself reflects a much more fundamental issue, of rising government bond supply chasing limited domestic savings pool

PM Modi says Union Budget 2026 focuses on fiscal discipline, inflation control and high capital spending, while backing reforms, MSMEs and tourism to drive growth and achieving 'Viksit Bharat' goals

Union Budget 2026 stays focused on fiscal prudence, targets a 4.3% deficit, sustains ₹12.2 trillion capex, and backs rare earths, freight corridors, waterways and data centres, writes Madan Sabnavis

FM Nirmala Sitharaman pegged FY27 fiscal deficit at 4.3% of GDP, signalling continued fiscal consolidation, with net tax receipts seen at ₹28.7 trillion and higher tax devolution to states

The government is likely to aim for a fiscal deficit at 4.2 per cent of GDP for 2026-27, down from 4.4 per cent this fiscal year