Budget 2026-27: fiscal deficit 4.3%, capex ₹12.2 lakh crore
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Asked by UPSCPrelims 2025, 20182 PYQs
UPSC has already asked about this. Read the story with these questions in mind.
- Prelims 2018Consider the following statements: The Fiscal Responsibility and Budget Management (FRBM) Review Committee Report has recommended a debt to GDP ratio of 60% for…Solve with answer →
- Prelims 2025A country's fiscal deficit stands at ₹50,000 crores. It is receiving ₹10,000 crores through non-debt creating capital receipts. The country's interest liabilities are ₹1,500…Solve with answer →
What happened
- The fiscal deficit is estimated at 4.3% of GDP in BE 2026-27, after 4.4% in RE 2025-26 [PIB].
- Public capex rises to ₹12.2 lakh crore from ₹11.2 lakh crore in BE 2025-26; the Centre expects to reach a debt-to-GDP ratio of 50±1% by 2030-31 [PIB].
Background
- RE 2025-26 total expenditure is ₹49.6 lakh crore, of which capex ₹11 lakh crore; net tax receipts are put at ₹26.7 lakh crore [PIB].
Why it matters
- The Centre has moved its fiscal anchor from the yearly deficit to the debt ratio. Learn both numbers; questions will ask which one now leads.
How to use this in Mains
- As per PIB (2026-02-01): the fiscal deficit is estimated at 4.3% of GDP in BE 2026-27, after 4.4% in RE 2025-26.
- The Centre has moved its fiscal anchor from the yearly deficit to the debt ratio. Learn both numbers; questions will ask which one now leads.
Quotable data pointPublic capex rises to ₹12.2 lakh crore from ₹11.2 lakh crore in BE 2025-26; the Centre expects to reach a debt-to-GDP ratio of 50±1% by 2030-31.
PIB: Budget: debt-to-GDP and fiscal deficit, 1 Feb 2026
Exam angle
UPSC
Prelims: deficit and debt targets. · Mains: fiscal consolidation and the debt anchor.
Practice MCQs
Original practice questions (not PYQs).
Practice · UPSC
Debt-to-GDP target of the Centre for 2030-31
Answer (b) & explanation
PIB.
Practice · UPSC
Fiscal deficit in BE 2026-27
Answer (b) & explanation
PIB.
Go deeper
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Official source: PIB: Budget: debt-to-GDP and fiscal deficit, 1 Feb 2026
facts from cited sources only; faculty review pending