Fiscal deficit pegged at 4.3%
New Delhi: Union Finance Minister Nirmala Sitharaman on Sunday reaffirmed the government’s commitment to fiscal consolidation, pegging the fiscal deficit for 2026–27 at 4.3 percent of GDP while announcing gross market borrowings of Rs 17.2 lakh crore in the Union Budget presented in Lok Sabha.
Presenting the Budget, Sitharaman said India’s public finances have been placed on a stable and credible path despite global uncertainties, supported by sustained economic growth, prudent expenditure management and higher capital investment. “Since we assumed office, the country’s economic trajectory has been marked by stability, fiscal discipline, sustained growth and moderate inflation. This is the result of conscious choices we have made even in times of uncertainty and disruptions,” she said.
The fiscal deficit target of 4.3 percent marks a further step in the government’s medium-term consolidation roadmap, even as it continues to prioritise public investment to support growth. Sitharaman underlined that fiscal prudence remains a cornerstone of economic policy. “We have pursued far-reaching structural reforms. Fiscal prudence and monetary stability, while maintaining a strong thrust on public investment, have been central to our approach,” she said.
Sitharaman announced that gross market borrowings for FY27 are estimated at Rs 17.2 lakh crore, a key figure closely tracked by bond markets and investors. The borrowing programme is intended to finance capital expenditure and priority sectors while ensuring orderly market conditions.
Linking fiscal consolidation with growth, Sitharaman said the government’s emphasis on self-reliance and manufacturing has strengthened the economy’s fundamentals.
