**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.
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.”
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NB/PS
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