Fiscal consolidation slows in Budget 2026–27, tax buoyancy weakens
pre-market1 source ↓written by the desknot a recommendation
- deficit projected
- 4.3% of GDP
- in FY26
- 4.4%
- reduction from FY25
- 40 basis points
The Union Budget 2026–27 indicates a slower pace of fiscal consolidation, with the fiscal deficit projected at 4.3% of GDP. This marks a slight improvement from 4.4% in FY26, following a 40 basis points reduction from FY25. The government aims for a cautious approach amidst weakening tax revenues, reaffirming its medium-term debt targets.
Not investment advice. For informational purposes only.