BUDGET
Econ secy says fisc gap consolidation main aim under debt glide path
This story was originally published at 18:58 IST on 1 February 2026
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--Econ secy: Fiscal deficit to be operational target for debt-to-GDP
--Econ secy: Anchoring debt reduction trajectory on cutting fisc gap
--Econ secy: To continue fisc deficit consolidation under debt glide path
MUMBAI – The government's main target remains reducing the country's fiscal deficit under the debt glide path, Economic Affairs Secretary Anuradha Thakur said Sunday. "...glide path will be continued and fiscal deficit in other words shall be the operational target to attain the debt-to-GDP. So it's not that we are going away from fiscal deficit, it's not going to be monitorable target," Thakur said in a press conference after the Budget announcement.
The fiscal policy strategy for 2026-27 (Apr-Mar) will continue to be guided by the debt glide path indicated in the Union Budget for FY26. The medium-term target is to lower its debt to 50% of GDP, plus or minus 1%, by FY31 with the fiscal deficit acting as the operational target.
The Budget has pegged the fiscal deficit target for FY27 at 4.3% of GDP, while the deficit for FY26 was retained at 4.4% GDP in the revised estimates. The central government's debt is seen at 55.6% of GDP in FY27, down from 56.1% in FY26.
In absolute terms, the fiscal deficit for FY27 is estimated at INR 16.958 trillion, up from the revised estimate of INR 15.585 trillion for the current financial year. The Budget for FY26 had projected the fiscal deficit at INR 15.689 trillion. Data released Friday showed the fiscal deficit in the first nine months of FY26 was INR 8.558 trillion, accounting for 54.9% of the revised estimate. End
Reported by J. Navya Sruthi
Edited by Ashish Shirke
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