Page 2 - Fiscal Deficit

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 revises fiscal deficit ratios for FY23-FY25 after GDP base year update

The fiscal deficit as a percentage of GDP for three financial years till 2024-25 has been revised upwards following the revision in base year for calculation of GDP, the government informed Parliament on Tuesday. As per the new GDP Series published on February 27, the fiscal deficit as a percentage of GDP works out to be 4.9 per cent for 2024-25, 5.7 per cent for 2023-24, and 6.7 per cent for 2022-23, Minister of State for Finance Pankaj Chaudhary said in a written reply in the Rajya Sabha. 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. In absolute term, fiscal deficit stood at Rs 15.74 lakh crore in FY'25, Rs 16.55 lakh crore in FY'24 and Rs 17.38 lakh crore in FY'23. On February 27, 2026, the government released the new series of Gross Domestic Product (GDP) estimates with 2022-23 as the base year, replacing the previous series with a base year of 201112. With the new 2022-23 base, the Nominal GDP or GDP at

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

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

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

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

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

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

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

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

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

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

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

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 2026-27: 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

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

Budget 2026 raises FY27 capex 11.5% to ₹12 trillion, eyes infra growth

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

Budget 2026: Industrial policy takes centre stage, deeper fixes pending

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

Union Budget 2026-27: Govt borrowing challenge passed on to RBI

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