Home India Ministry of Finance INDIA ON TRACK TO REACH DEBT-TO-GDP RATIO OF 50±1 PERCENT BY...
Date: 2026-02-01 Category: Press Release State: Union Government Country: India

INDIA ON TRACK TO REACH DEBT-TO-GDP RATIO OF 50±1 PERCENT BY 2030-31

Issued by Ministry of Finance · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary** This document is a press release from the Ministry of Finance regarding the Union Budget 2026-27, presented to Parliament on February 1, 2026. It outlines key fiscal targets, including achieving a debt-to-GDP ratio of 50±1 percent by 2030-31, and provides estimates for fiscal deficit, capital expenditure, and tax receipts for Revised Estimates (RE) 2025-26 and Budget Estimates (BE) 2026-27. **Key Points / Main Content** * **Debt-to-GDP Ratio Target:** * India is on track to reach a debt-to-GDP ratio of 50±1 percent by 2030-31. * **Fiscal Deficit:** * Fiscal deficit is estimated to remain at 4.4 percent of GDP as per RE 2025-26. * Fiscal deficit is estimated to be 4.3 percent of GDP in BE 2026-27. * **Capital Expenditure (RE 2025-26):** * Capital expenditure stands at ₹11 lakh crore. * Total expenditure is ₹49.6 lakh crore. * **Tax Receipts (RE 2025-26):** * Centre's net tax receipts are projected to touch ₹26.7 lakh crore. * **Revised Estimates (RE) 2025-26:** * RE of non-debt receipts are ₹34 lakh crore. * **Budget Estimates (BE) 2026-27:** * Non-debt receipts and total expenditure are estimated at ₹36.5 lakh crore and ₹53.5 lakh crore, respectively. * Centre's net tax receipts are estimated at ₹28.7 lakh crore. * **Gross Market Borrowings:** * Net market borrowings from dated securities are estimated at ₹11.7 lakh crore. * Gross market borrowings are estimated at ₹17.2 lakh crore. **Impact Analysis** **Stakeholder: Government** * **Impact:** The Government is able to deliver on fiscal commitments without compromising on social needs and will have more resources for priority sector expenditure. * **Action Required:** Continue fiscal consolidation efforts to meet the debt-to-GDP target and manage fiscal deficit within the set parameters. **Stakeholder: Finance and Corporate Affairs Ministry** * **Impact:** The Ministry is responsible for implementing the budget provisions and achieving the fiscal targets. * **Action Required:** Implement budget proposals, monitor fiscal performance, and ensure efficient resource allocation. **Stakeholder: Citizens** * **Impact:** Citizens may benefit from increased government spending on priority sectors as the debt-to-GDP ratio declines. * **Action Required:** No specific action required.

Key Entities Referenced

Fiscal Deficit: The difference between the government's revenue and expenditure; a key indicator in the document's discussion of debt management. Debt-to-GDP Ratio: The ratio of a country's national debt to its gross domestic product (GDP), a key metric of the country's ability to repay its debt, and a primary target discussed in the document. Ministry of Finance: The ministry responsible for fiscal policy, financial matters, taxation, and economic issues in India. Union Budget: An annual financial statement presenting the government's revenues and expenditures for the upcoming fiscal year.
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Ministry of Finance INDIA ON TRACK TO REACH DEBT-TO-GDP RATIO OF 50±1 PERCENT BY 2030-31 FISCAL DEFICIT TO REMAIN AT4.4 PERCENT OF GDP AS PER RE 2025-26 FISCAL DEFICIT ESTIMATED TO BE 4.3 PERCENT OF GDP IN BE 2026-27 CAPITAL EXPENDITURE STANDS AT 11 LAKH CRORE OF TOTAL EXPENDITURE OF 49.6 LAKH CRORE AS PER RE 2025-26 CENTRE’S NET TAX RECEIPTS TO TOUCH 26.7 LAKH CRORE प्रव तथ: 01 FEB 2026 12:42PM by PIB Delhi While presenting the Union Budget 2026-27in Parliament today, Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman stated, “Government has been delivering onfiscal commitments consistently without compromising on social needs.” In line with this, the debt-to-GDP ratio is estimated to be 55.6 percent of GDP in BE 2026-27, compared to 56.1 percent of GDP in RE 2025-26. A declining debt-to-GDP ratio will gradually free up resources for priority sectorexpenditure by reducing the outgo on interest payments. Fiscal DeficitWhile speaking about Fiscal deficit, one of the main operational instruments for debt targeting, Smt. Sitharaman informedthe parliament tha commitment made in FY 2021-22 to reduce fiscal deficit below 4.5 percent of GDP by 2025-26 has been fulfilled. In RE 2025-26, the fiscal deficit has been estimated at par with BE of 2025-26 at 4.4 percent of GDP. In line with the new fiscal prudence path of debt consolidation, the fiscal deficit in BE 2026-27 is estimated to be 4.3 percent of GDP.” Revised Estimates (RE) 2025-26. The Finance Minister informedthat,“ The RE of the non-debt receipts are ₹34 lakh crore of which the Centre’s net tax receipts are ₹26.7 lakh crore. The Revised Estimate of the total expenditure is ₹49.6 lakh crore, of which the capital expenditure is about ₹11 lakh crore.” Budget Estimates (BE) 2026-27 The Union Finance Minister stated that, “The non-debt receipts and the total expenditure are estimated as ₹36.5 lakh crore and ₹53.5 lakh crore respectively. The Centre’s net tax receipts are estimated at ₹28.7 lakh crore.” Gross Market Borrowings The Union Finance Ministersaid that “To finance the fiscal deficit, the net market borrowings from dated securities are estimated at ₹11.7 lakh crore. The balance financing is expected tocome from small savings and other sources. The gross market borrowings are estimated at ₹17.2 lakh crore.” **** NB/PS (रलीज़ आईडी: 2221395) आगंतुक पटल : 1224 इस वज्ञ को इन भाषाओ ंम पढ़: Marathi , Telugu , Malayalam , Tamil , Kannada , Urdu , ही , Bengali , Punjabi , Gujarati

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