India financial outlook
Every year on 1 February, the Union Finance Minister presents the Union Budget to Parliament, setting out what the central government plans to spend and how it will pay for it.
Union Budget 2026-27
The central government plans to spend Rs 53.47 lakh crore in 2026-27, 7.7% more than the revised estimate for 2025-26, and expects receipts other than borrowing of Rs 36.52 lakh crore. Interest on past borrowing takes about a quarter of all spending. The fiscal deficit is targeted at 4.3% of GDP, and the government aims to bring its outstanding debt down to about 50% of GDP by March 2031.
| Total spending | Rs 53,47,315 crore |
|---|---|
| Receipts (excluding borrowing) | Rs 36,51,547 crore |
| Fiscal deficit | 4.3% of GDP |
| Revenue deficit | 1.5% of GDP |
| Outstanding debt, 2026-27 | 55.6% of GDP |
| Nominal GDP growth assumed | 10% |
What the terms mean
The fiscal deficit is the amount the government must borrow in the year. The revenue deficit is the amount by which day-to-day spending, such as salaries, pensions, interest and subsidies, is more than revenue.
Sources
Figures: Union Budget 2026-27 (budget estimates), as summarised by PRS Legislative Research.
Reference links
- Union Budget: Ministry of Finance, Government of India
- PRS Legislative Research: Union Budget 2026-27 Analysis: summary of the budget
- Reserve Bank of India: State Finances, A Study of Budgets: yearly study of all state budgets
- Comptroller and Auditor General of India: audit reports on state finances