Fiscal consolidation slows in Budget 2026–27 as tax buoyancy weakens
after close1 source ↓written by the desknot a recommendation
- for FY27
- 4.3% of GDP
- in FY26
- 4.4%
- reduction
- 40 basis points
- in the previous
- 4.8%
The Union Budget 2026–27 indicates a slower pace of fiscal consolidation, with the fiscal deficit projected at 4.3% of GDP for FY27, a slight improvement from 4.4% in FY26. This follows a 40 basis points reduction from 4.8% in the previous year. The government is adopting a more cautious approach amid weakening tax buoyancy, impacting market sentiment.
Not investment advice. For informational purposes only.