Fiscal Deficit & FRBM (Fiscal Policy & Budget).
Syllabus: UPSC Pre GS1: Economic & Social Development; Mains GS3
FRBM Act for UPSC: why it was passed, targets, required statements, N.K. Singh review, 2018 amendment, escape clause and the new debt…
Fiscal deficit for UPSC: revenue, effective revenue, fiscal and primary deficit with formulas, FRBM Act and NK Singh review, debt targets, financing…
On 25 September 2026 the Government, in consultation with the RBI, said it will borrow ₹7,86,000 crore through dated securities in the second half of 2026-27, using 23 weekly auctions. This includes ₹15,000 crore of Sovereign Green Bonds. Full-year dated borrowing is now put at ₹15,99,506 crore, below the Budget Estimate.
UPSC angle: Prelims: who manages government borrowing; what Sovereign Green Bonds fund. · Mains: Borrowing below BE: what it implies for fiscal deficit and bond yields.
25 Sep 2026
The Centre's provisional accounts for 2025-26, released on 1 June 2026, show total receipts of ₹33,85,982 crore, or 99.4% of the Revised Estimate, and total expenditure of ₹49,05,151 crore, or 98.8% of RE. Interest payments took ₹12,42,575 crore. States received ₹13,92,971 crore as tax devolution, ₹1,06,086 crore more than the year before.
UPSC angle: Prelims: receipts classification.
1 Jun 2026
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.
UPSC angle: Prelims: deficit and debt targets. · Mains: fiscal consolidation and the debt anchor.
1 Feb 2026
Long tenors (40, 50 years) suit insurers and pension funds and lengthen debt maturity.
UPSC angle: Prelims: SGrBs.
26 Sep 2025
Upgrades can lower borrowing costs for the state and firms abroad.
UPSC angle: Prelims: rating agencies.
19 Sep 2025