Government on track to meet 4.4% fiscal deficit target
after close1 source ↓written by the desknot a recommendation
- target
- 4.4% fiscal deficit
- of total expenditure
- 12.5% to 22.6%
- of GDP
- 2.6% to 4%
The Economic Survey 2025-26 indicates the government is on track to achieve a 4.4% fiscal deficit target for the current financial year. Capital spending has notably increased from 12.5% to 22.6% of total expenditure, with effective capex rising from 2.6% to 4% of GDP. This strong focus on public investment has led to three sovereign rating upgrades this year.
This positive fiscal outlook may enhance market sentiment and attract investor interest in sectors benefiting from increased government spending.
Not investment advice. For informational purposes only.