New Delhi, Feb 1: Finance Minister Nirmala Sitharaman has pegged fiscal deficit at 4.3 per cent of the GDP for the year 2026-27, as against 4.4 per cent being targeted in 2025-26.
The difference between total revenue and total expenditure of the government is termed as the fiscal deficit.
It is an indication of the total borrowings that may be needed by the government.
The government had intended to bring the fiscal deficit below 4.5 per cent of GDP by the financial year 2025-26, and is on the path to achieving it.
The Union government in the Budget for 2026-27 has outlined a comprehensive economic roadmap aimed at strengthening India's self-reliance while keeping the country firmly integrated with global markets.
In her initial remarks, Sitharaman said that since her government assumed office, India's economic trajectory was marked by fiscal discipline and sustained growth.
She stressed that the government led by Prime Minister Narendra Modi has chosen action over ambivalence, and reform over rhetoric, keeping Atmanirbharta or self-reliance as a lodestar.
"Since we assumed office 12 years ago, India's economic trajectory has been marked by stability, fiscal discipline, sustained growth and moderate inflation," she said. She continued that India will balance ambition with inclusion going ahead.
