Debt-to-GDP ratio estimated to be 55.6 pc of GDP in 2026-27: FM

New Delhi: Finance Minister Nirmala Sitharaman on Sunday said that the debt-to-GDP ratio is estimated to be 55.6 per cent of GDP in 2026-27 (budget estimate or BE), compared to 56.1 per cent of GDP in 2025-26 (revised estimate or RE).

A declining debt-to-GDP ratio will gradually free up resources for priority sector expenditure by reducing the outgo on interest payments.

"Government has been delivering on fiscal commitments consistently without compromising on social needs," FM Sitharaman said while presenting the Budget 2026-27 in the Parliament.

Sitharaman informed the Parliament that the commitment made in FY 2021-22 to reduce fiscal deficit below 4.5 per cent of GDP by 2025-26 has been fulfilled. Read More...