New Delhi: The Union Budget 2026-27 has reaffirmed the Centre’s commitment to fiscal consolidation, projecting a fiscal deficit of 4.3% of GDP in FY27 while keeping the FY26 revised estimate at 4.4%, as the government stays on course to bring the debt-to-GDP ratio towards 50±1% by 2030-31.
Presenting the Budget in Parliament, Finance Minister Nirmala Sitharaman said the government has delivered on fiscal commitments without compromising social priorities, with the debt ratio seen easing to 55.6% in FY27 from 56.1% in FY26 (RE), a move expected to gradually free resources by lowering interest outgo.
On the expenditure side, the FY26 revised total outlay stands at ₹49.6 lakh crore, of which capital expenditure is about ₹11 lakh crore, underlining the continued push for growth-supporting public investment even as headline spending is calibrated.
The Centre’s net tax receipts are pegged at ₹26.7 lakh crore in FY26 (RE), while non-debt receipts are estimated at ₹34 lakh crore, according to the Budget documents.
For FY27 (BE), the government has projected total expenditure of ₹53.5 lakh crore and non-debt receipts of ₹36.5 lakh crore, with net tax receipts seen rising to ₹28.7 lakh crore, reflecting confidence in revenue buoyancy amid steady economic growth.
To finance the deficit, net market borrowings from dated securities are estimated at ₹11.7 lakh crore, while gross market borrowings are placed at ₹17.2 lakh crore, with the balance to come from small savings and other sources.