Nirmala Sitharaman’s Ninth Budget To Lay Ground For Further Reforms

Here are some important fiscal metrics to watch out for in Budget 2026.

GDP Growth

The government’s approach to gross domestic product (GDP) growth rate will be watched out for by all in FM Sitharaman’s Budget speech in view of the economic challenges posed by the US tariffs and geopolitical tensions. The Economic Survey, presented in Parliament on Jan. 29, has projected a real GDP growth rate of 6.8-7.2% for FY27, compared to 7.4% estimated for the current fiscal (FY26), reflecting a steady economic advancement.

Fiscal Deficit 

The fiscal deficit was estimated at 4.4% of GDP for FY 2025-26. In this Budget, the government is likely to reduce the fiscal deficit target further.

Revenue Deficit 

The gap between revenue expenditure and revenue receipts was expected to narrow to Rs 5.24 lakh crore in FY26, or 1.5% of GDP, compared to Rs 6.1 lakh crore (1.9% of GDP) in the revised estimates of 2024-25. 

Capital Expenditure 

The Budget 2025 underscored continued emphasis on capital spending, with capital expenditure on the books at Rs 11.21 lakh crore for FY 2025-26, slightly higher than the revised Rs 10.18 lakh crore for the previous financial year. 

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