Page 2 - Latest Updates on Fiscal Deficit
16th Finance Commission retains 41% devolution, introduces GDP criterion
the 16th Finance Commission kept tax devolution at 41%, added GDP contribution as a new criterion, dropped revenue deficit grants, and pushed states towards stronger fiscal discipline
 "16th Finance Commission retains 41% devolution, introduces GDP criterion")
Budget 2026 raises FY27 capex 11.5% to ₹12 trillion, eyes infra growth
Union Budget 2026-27 raises capital expenditure to ₹12.2 trn, reinforcing the govt's infrastructure-led growth strategy, even as spending in the current fiscal is expected to fall short of estimates
 "Budget 2026 raises FY27 capex 11.5% to ₹12 trillion, eyes infra growth")
Budget 2026: Industrial policy takes centre stage, deeper fixes pending
And bigger problems await from policy bottlenecks that the Budget has left untouched
 "Budget 2026: Industrial policy takes centre stage, deeper fixes pending")
Union Budget 2026-27: Govt borrowing challenge passed on to RBI
Budget FY27 signals deeper banking reforms, possible PSB consolidation and higher borrowing, shifting the onus to RBI to manage yields and liquidity
 "Union Budget 2026-27: Govt borrowing challenge passed on to RBI")
Budget may make India an investment-led and export-capable economy
The organising idea is clear: India is no longer trying to grow fast; it is trying to grow well
 "Budget may make India an investment-led and export-capable economy")
Budget 2026 conservative, focuses on fiscal stability: BofA Securities
BofA Securities said the modest fiscal consolidation rests on "very realistic" revenue and expenditure assumptions, adding to the credibility of the Ministry of Finance
 "Budget 2026 conservative, focuses on fiscal stability: BofA Securities")
Budget 2026: Onus of executing incremental capex shifting towards states
Aditi Nayar analyses the Budget's fiscal prudence, higher public capex via states, a 4.3 per cent deficit target, debt consolidation, and the impact of higher gross borrowings on bond yields
 "Budget 2026: Onus of executing incremental capex shifting towards states")
Budget 2026 'tactical', not a 'breakthrough', says Moody's Ratings
The economy is seen growing at 7.4 per cent in the current financial year, with inflation likely to be near 2 per cent
 "Budget 2026 'tactical', not a 'breakthrough', says Moody's Ratings")
Budget 2026 keeps fiscal discipline intact; bond market faces supply stress
The tough position that the bond market finds itself reflects a much more fundamental issue, of rising government bond supply chasing limited domestic savings pool
 "Budget 2026 keeps fiscal discipline intact; bond market faces supply stress")
Budget 2026 aims to reduce fiscal deficit, boost capex and growth: PM Modi
PM Modi says Union Budget 2026 focuses on fiscal discipline, inflation control and high capital spending, while backing reforms, MSMEs and tourism to drive growth and achieving 'Viksit Bharat' goals
 "Budget 2026 aims to reduce fiscal deficit, boost capex and growth: PM Modi")
Budget 2026 delivers well on prudence and focuses on future thrust areas
Union Budget 2026 stays focused on fiscal prudence, targets a 4.3% deficit, sustains ₹12.2 trillion capex, and backs rare earths, freight corridors, waterways and data centres, writes Madan Sabnavis
 "Budget 2026 delivers well on prudence and focuses on future thrust areas")
Budget 2026: FM Sitharaman pegs fiscal deficit at 4.3% of GDP for FY27
FM Nirmala Sitharaman pegged FY27 fiscal deficit at 4.3% of GDP, signalling continued fiscal consolidation, with net tax receipts seen at ₹28.7 trillion and higher tax devolution to states
 "Budget 2026: FM Sitharaman pegs fiscal deficit at 4.3% of GDP for FY27")
Budget 2026: What to expect on fiscal deficit, defence and infrastructure
The government is likely to aim for a fiscal deficit at 4.2 per cent of GDP for 2026-27, down from 4.4 per cent this fiscal year
 "Budget 2026: What to expect on fiscal deficit, defence and infrastructure")
Fiscal deficit in April-December kept at 54.5% of Budget Estimates
India contained its FY26 fiscal deficit at 54.5% of Budget Estimates for April-December, aided by higher non-tax revenues and controlled spending despite a December capex dip
 "Fiscal deficit in April-December kept at 54.5% of Budget Estimates")
Budget 2026 may focus on managing debt-to-GDP ratio over fiscal deficit
Under the revised Fiscal Responsibility and Budget Management (FRBM) Act, the fiscal deficit target was below 4.5 per cent of GDP for 2025-26
 "Budget 2026 may focus on managing debt-to-GDP ratio over fiscal deficit")
Budget 2026: Too many known unknowns amid push to revive private capex
Amid data and fiscal uncertainties, the govt faces the difficult task of creating conditions to boost private capex
 "Budget 2026: Too many known unknowns amid push to revive private capex")
Eco Survey highlights: Domestic demand in focus amid global uncertainties
India's economy is expected to grow 6.8-7.2% in 2026-27; exports, domestic demand and reforms support growth, while global trade tensions pose some risks
 "Eco Survey highlights: Domestic demand in focus amid global uncertainties")
Economic Survey pegs India's real GDP growth at 6.8-7.2 per cent in FY27
India's economy is expected to grow 6.8-7.2% in 2026-27; exports, domestic demand and reforms support growth, while global trade tensions pose some risks
Budget 2026: SBI Research sees fiscal deficit at 4.2% amid global risks
SBI Research expects Budget 2026 to focus on fiscal discipline, managing rising debt, steady borrowing and higher capital spending amid global uncertainty and volatile markets
 "Budget 2026: SBI Research sees fiscal deficit at 4.2% amid global risks")
This Budget will see many firsts, but future Budgets need a different mould
Budget 2026-27 breaks new ground, but delayed GDP rebasing and continued fiscal secrecy risk undermining its numbers within weeks
 "This Budget will see many firsts, but future Budgets need a different mould")