India's fiscal deficit is budgeted at 4.4% of GDP in FY26, and policymakers are expected to signal a further consolidation to around 4.0% in FY27, EY said. However, slower-than-expected nominal GDP growth and subdued tax collections have narrowed the room for manoeuvre.
The report mentioned, "For the fiscal year 2025-26, Union budget will skilfully balance fiscal consolidation, and measures for advancing growth. We expect centre to achieve or maybe even undershoot (by ~10bps) its fiscal deficit target of 4.9 per cent ( per cent of GDP), owing to expected sa
The survey report also added that India's economic growth has remained resilient despite global challenges and uncertainties arising from global economic and geopolitical conditions.
Prime Minister Narendra Modi called India's fiscal prudence during the pandemic, a role model for the world during his inaugural address of 'Journey Towards Viksit Bharat: A Post Union Budget 2024-25 Conference' organized by the Confederation of Indian Industry (CII) at Vigyan Bhawan in New