India Targets 4.3% Fiscal Deficit by FY27; Boosts Capital Expenditure
Budget
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CNBC TV18•01-02-2026, 15:01
India Targets 4.3% Fiscal Deficit by FY27; Boosts Capital Expenditure
- •Finance Minister Nirmala Sitharaman announced a fiscal deficit target of 4.3% of GDP for FY27, a slight reduction from the 4.4% budgeted for the current financial year.
- •The Union Budget for 2026-27 is pegged at ₹53.5 lakh crore, with a significant allocation of ₹12,21,821 crore towards capital expenditure.
- •Effective capital expenditure, including grants for asset creation, is estimated at ₹17,14,523 crore, emphasizing infrastructure-led growth.
- •Net tax receipts for 2026-27 are projected at ₹28.7 lakh crore, with ₹1.4 lakh crore allocated for tax devolution to states.
- •Total transfers to states are set at ₹25,43,769 crore, an increase of ₹3,78,263 crore over FY25, indicating enhanced fiscal support.
Why It Matters: India aims for fiscal consolidation with a 4.3% deficit target by FY27, prioritizing capital expenditure and state support.
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