In the Union Budget 2026-27, Finance Minister Nirmala Sitharaman announced that India’s debt-to-GDP ratio is estimated at 55.6%, reflecting the government’s focus on fiscal prudence. She highlighted that a declining debt ratio will free up resources for priority sectors by reducing interest payments.
Sitharaman noted that the government has consistently met its fiscal commitments without compromising on social needs. The fiscal deficit for 2026-27 is projected at 4.3% of GDP, slightly lower than the revised estimate of 4.4% for the previous year.
The Budget estimates non-debt receipts at Rs 36.5 lakh crore, with the Centre’s net tax receipts at Rs 28.7 lakh crore. Total expenditure is pegged at Rs 53.5 lakh crore, including a capital expenditure of Rs 12.2 lakh crore, up Rs 2.2 lakh crore from the previous year.
To finance the deficit, the government plans net market borrowings of Rs 11.7 lakh crore, supplemented by small savings and other sources. Sitharaman emphasized that the increased capital spending will support major infrastructure projects, generate jobs, and drive economic growth.