GDP Growth
MoS Finance says FY27 fiscal deficit pegged at 4.5%, as per new GDP series
This story was originally published at 15:42 IST on 24 March 2026
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--MoS Finance: FY27 fiscal deficit placed at 4.5% of GDP, per new GDP series
NEW DELHI – Based on the downward revision in India's nominal GDP as per the new series with 2022-23 (Apr-Mar) as the base year, the fiscal deficit for FY27 is pegged at 4.5% of GDP, Minister of State for Finance Pankaj Chaudhary said Tuesday. This is 20 basis points higher than the Budget estimate for fiscal deficit in FY27.
The Ministry of Statistics and Programme Implementation last month released the new GDP series data with FY23 replacing FY12 as the base year. This was the first major overhaul of the country's national accounts in over a decade. The government had presented the Budget for FY27 before the revision of the GDP series and had estimated the fiscal deficit for the next financial year at 4.3% of GDP.
The Budget estimate for fiscal deficit in FY27 is now 4.5% of GDP, Chaudhary said in a written reply to a question in the Rajya Sabha. According to the revised GDP series, the Second Advance Estimate of nominal GDP for FY26 is placed at INR 345.5 trillion, as against INR 357.1 trillion in the First Advance Estimate based on the old series, Chaudhary mentioned.
In absolute terms, the fiscal deficit estimate for FY27 remains unchanged at INR 16.9 trillion. In the Budget for FY27, the government assumed nominal GDP growth of 10% to INR 393 trillion from INR 357.1 trillion. While Chaudhary did not mention the expected size of the nominal GDP for FY27, 10% growth will take India's nominal GDP near INR 380 trillion. End
Reported by Krity Ambey
Edited by Avishek Dutta
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