Nominal GDP Revision Downward: Experts Predict Higher Fiscal Deficit
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Nominal GDP Revision: Fiscal Deficit to Rise, Experts Warn
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News18•27-02-2026, 21:45
Nominal GDP Revision: Fiscal Deficit to Rise, Experts Warn
•Downward revision of India's nominal GDP by Rs 12 lakh crore for the current fiscal year may increase the fiscal deficit.
•The Ministry of Statistics and Programme Implementation (MoSPI) released a new GDP calculation framework with a base year of 2022-23, replacing the 2011-12 series.
•The new series shows real GDP growth of 7.8% in Oct-Dec 2025-26, driven by manufacturing and services, but nominal GDP base for FY26 was revised down to Rs 345 lakh crore from Rs 357 lakh crore.
•Experts predict the FY26 fiscal deficit could reach 4.5%, slightly higher than the earlier 4.4% expectation, due to the smaller nominal GDP.
•The new methodology incorporates wider administrative datasets like GST transaction data and e-Vahan registrations for a more comprehensive economic activity capture.
