&imwidth=800&imheight=600&format=webp&quality=medium "‘I have fulfilled my commitment...’: Indian FM pegs fiscal deficit at 4.3% of GDP for FY2026-27")
Indian Finance Minister presented the Union Budget 2026-27 in the Lok Sabha on Sunday (Feb 1). During the presentation, Nirmala Sitharaman set the fiscal deficit target at 4.3 per cent of GDP for 2026–27, slightly lower than the 4.4 per cent target for 2025–26. She also said that she has fulfilled her commitment made in the year 2021-22 to reduce the fiscal deficit below 4.5% of GDP by 2025-26
“I am happy to inform this August House that I have fulfilled my commitment made in 2021-22 to reduce fiscal deficit below 4.5% of GDP by 2025-26,” FM Sitharaman said.
She further said, “Since we assumed office 12 years ago, India’s economic trajectory has been marked by stability, fiscal discipline, sustained growth and moderate inflation.” She added that India will balance ambition with inclusion going ahead.
What is fiscal deficit?
Fiscal deficit is the difference between the total revenue and total expenditure of the government in a financial year. It indicates how much borrowing is needed by the government to meet its expenses and is expressed as a percentage of GDP to show the level of fiscal discipline in the economy.
Fiscal deficit also reflects the government’s financial health and discipline. A manageable deficit helps the government in controlling inflation and keeping borrowing costs low. It also supports the stability of the currency and boosts the confidence of investors. In contrast, an excessive deficit can strain the country’s economy and slow long-term growth.
Trending Stories
&im=FitAndFill=(700,400))
New OTT Releases this week (February 16-22, 2026): Kennedy, 56 Days, Pavane- 8 latest movies and TV shows on Netflix, Prime Video and more
&im=FitAndFill=(700,400))
Epstein Files new release has 305 names, including politicians, celebrities and businessmen - Full List
&im=FitAndFill=(700,400))
New Epstein documents mention Madeleine McCann, British child missing since 2007. Here’s what witness saw
&im=FitAndFill=(700,400))
‘USS Gerald R. Ford or USS Abraham Lincoln’: Which carrier can launch more airstrikes on Iran in a 24‑hour period?
&im=FitAndFill=(700,400))
'Heavier than 15,000 elephants': What does USS Gerald R. Ford’s 100,000-tonne full-load displacement really mean?
)
Was Jeffrey Epstein really involved in cannibalism? Here's what DOJ files reveal
&im=FitAndFill=(700,400))
'Long Stop': How many miles does it take the USS Abraham Lincoln to stop?
&im=FitAndFill=(700,400))
‘Electronic blackout’: How 15 Growler jets from USS Gerald R. Ford & USS Abraham Lincoln can blind Iran’s entire radar network
&im=FitAndFill=(700,400))
How would USS Gerald R. Ford’s Evolved Sea Sparrow Missiles shield the supercarrier from Iranian missile threats?
&im=FitAndFill=(700,400))
'Mentally sick' trans person Roberta Esposito identified as Rhode Island hockey arena shooting suspect | All we know - In Pics
&im=FitAndFill=(700,400))
How the destroyers around the USS Abraham Lincoln can track 100 targets at once
)
Nikhil Gupta pleaded guilty to end ‘long and exhausting’ legal battle for family: Report
&im=FitAndFill=(700,400))
'Storm warning': What does the USS Abraham Lincoln do when big waves hit?
During the Union Budget 2026-27 speech, the finance minister In her speech, Sitharaman also highlighted that the government has Atmanirbharta (self-reliance) as a north star, which has resulted in a high growth rate of 7 per cent.
“Since we assumed office 12 years ago, India's economic trajectory has been marked by stability, fiscal discipline, sustained growth and moderate inflation,” Sitharaman said in her ninth consecutive Union budget presentation in the Parliament.
