India reaches fiscal deficit target for 2025-26, credit ratings improving: FM Sitharaman
Finance Minister Nirmala Sitharaman announced that India has successfully met its fiscal deficit target of 4.4% of GDP for the 2025-26 fiscal year. She emphasized the government's commitment to fiscal prudence and debt management while maintaining social welfare and infrastructure spending.
Why it matters
Meeting fiscal targets is a key indicator of a nation's economic stability and creditworthiness, influencing foreign investment and sovereign ratings.
India has met its fiscal deficit target for 2025-26, Union finance minister Nirmala Sitharaman said on Sunday, asserting that the government has stayed on its planned path of fiscal discipline."We have given ourselves a fiscal discipline path on the fiscal deficit as well. We have fulfilled the trajectory. The last mile that had to be reached by 2025-26, we have reached," Sitharaman said while addressing the Indian diaspora in Chicago.India's fiscal deficit stood at 4.4 per cent of GDP for the year ended March 31, 2026. In absolute terms, it was Rs 15.19 trillion, which was 97.5 per cent of the government's revised estimate presented in February.FM Sitharaman also addressed concerns over government borrowing and debt. She said the government is targeting a debt-to-GDP ratio of 50 per cent by 2030.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in