India’s fiscal deficit is estimated to be 4.3% of the gross domestic product in the financial year 2026-’27, Union Finance Minister Nirmala Sitharaman said during her Union Budget address on Sunday.
This will be marginally lower than the Budget estimate of 4.4% in 2025-’26.
A fiscal deficit arises when the government’s expenditure is more than the revenue it generates in a given financial year.
The debt-to-GDP ratio is estimated to be 55.6% in the next financial year, marginally lower than the revised estimate of 56.1% in the fiscal year 2025-’26.
The debt-to-GDP ratio measures a country’s total debt against the size of its economy.
Total expenditure of the Union government is expected to be Rs 53.5 lakh crore in the financial year 2026-’27, Sitharaman said, adding that the net tax receipts are estimated to be Rs 28.7 lakh crore during the fiscal year.
Also read: Budget 2026: Nirmala Sitharaman proposes increasing capital expenditure to Rs 12.2 lakh crore
Read more on Budget 2026 here.
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