India reaches fiscal deficit target for 2025-26, credit ratings improving: FM Sitharaman
India proudly announces the achievement of its fiscal deficit target for 2025-26, showcasing commendable fiscal discipline. With a clear vision, the government aspires to maintain a 50 percent debt-to-GDP ratio by 2030. This fiscal prudence was executed without compromising social welfare or infrastructure investment. Notably, smart arrangements and subsidies enabled the smooth supply of…
Union Finance Minister Nirmala Sitharaman announced on Sunday that India has met its fiscal deficit target for 2025-26, reaffirming the government's commitment to fiscal discipline. The fiscal deficit stood at 4.4% of GDP for the year ending March 31, 2026, with the absolute figure of Rs 15.19 trillion representing 97.5% of the revised estimate presented in February.
Sitharaman also addressed concerns over government borrowing and debt, stating that India aims to reduce its debt-to-GDP ratio to 50% by 2030, contrasting this with advanced economies that have debt levels exceeding 200% of GDP. The enhanced fiscal prudence has led to improving credit ratings, according to Sitharaman. The finance minister highlighted India's economic resilience post-COVID-19, noting that domestic growth remained at 7% or more despite global challenges.
She also assured the public that there was no fertiliser shortage, attributing this to the government's proactive measures in arranging fertiliser supplies from various sources. Sitharaman praised the government for maintaining fiscal management without compromising funding for social welfare projects or public capital expenditure on infrastructure.
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