Union Budget 2026: FY27 fiscal deficit likely to peg at 4.3% of GDP, says ICRA

Rating agency ICRA anticipates the government will target a fiscal deficit of 4.3% of GDP for FY2027, maintaining robust capital expenditure growth. Despite potential revenue shortfalls this fiscal, the focus is shifting to medium-term debt consolidation. Expect a significant rise in market borrowings next fiscal year.

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