The Budget shifts focus to lowering debt-to-GDP, targeting 55.6% in FY27 and a fiscal deficit of 4.3%
Fiscal deficit has fallen from 9.2% in FY21 to 4.4%, alongside improved quality of expenditure
Even a 50±1% debt target by FY31 leaves central debt well above FRBM benchmarks
Future pressures—Pay Commission costs and electoral cycles—may make deeper consolidation harder
General government debt stands near 80% of GDP, with rising state debt threatening overall consolidation
High borrowing risks crowding out private investment, underscoring the need for medium-term fiscal strategy