Centre Targets 4.3% Fiscal Deficit by FY27, Signals Fiscal Discipline

• The Centre aims for a fiscal deficit of 4.3% of GDP by the financial year 2026-27, as announced by Finance Minister Nirmala Sitharaman.
• This target is a slight reduction from the 4.4% projected for FY26 and 4.8% recorded in FY25.
• In the first eight months of the current FY, the fiscal deficit reached Rs 9.8 lakh crore, or 62.3% of the annual estimate.
• The government is committed to fiscal discipline, with a credible glide path to reduce public debt closer to 50% of GDP by 2031.
• India's debt-to-GDP ratio is projected to decline to 55.6% in FY27 from 56.1% in the current financial year.

Why It Matters: India aims for a 4.3% fiscal deficit by FY27, demonstrating a strong commitment to fiscal discipline.