FM Announces Fiscal Deficit at 4.3% of GDP, Meets Fiscal Consolidation Target

Presenting the Union Budget 2026-27, Finance Minister Nirmal Sitharaman said the fiscal deficit for FY27 has been reduced to 4.3% of GDP, down from 4.4% in the revised estimates for FY26. She said the Centre has pursued fiscal consolidation consistently without compromising welfare spending, adding that it has “fulfilled the target of reducing the fiscal deficit to below 4.5%.”

The Centre has also accepted the recommendations of the 16th Finance Commission.

(This is a developing story).