Union Budget 2026-27 sets fiscal deficit at 4.3% of GDP; debt-to-GDP at 55.6%
Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27 in Parliament on 1 February 2026, estimating the fiscal deficit at 4.3% of GDP and total expenditure at ₹53.5 lakh crore.
Summary
Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27 in Parliament on 1 February 2026 — the first Budget prepared in Kartavya Bhawan, built around three 'kartavyas': accelerating growth, building people's capacity, and Sabka Sath, Sabka Vikas. The fiscal deficit is estimated at 4.3% of GDP in BE 2026-27; for 2025-26 the revised estimate is 4.4%, matching the Budget estimate and fulfilling the 2021-22 commitment to bring the deficit below 4.5% by 2025-26. With debt now the main anchor, the debt-to-GDP ratio is estimated at 55.6% in BE 2026-27 against 56.1% in RE 2025-26, and India is on track for 50±1% by 2030-31. Non-debt receipts are estimated at ₹36.5 lakh crore, total expenditure at ₹53.5 lakh crore and the Centre's net tax receipts at ₹28.7 lakh crore. Gross market borrowings are ₹17.2 lakh crore and net market borrowings from dated securities ₹11.7 lakh crore.
Key facts
- Presented
- 1 February 2026, by Nirmala Sitharaman
- Fiscal deficit
- 4.3% of GDP (BE 2026-27); 4.4% (RE 2025-26)
- Debt-to-GDP
- 55.6% (BE 2026-27) vs 56.1% (RE 2025-26); target 50±1% by 2030-31
- Total expenditure
- ₹53.5 lakh crore
- Non-debt receipts
- ₹36.5 lakh crore
- Net tax receipts
- ₹28.7 lakh crore
- Gross market borrowings
- ₹17.2 lakh crore (net ₹11.7 lakh crore)
- Three kartavyas
- Growth; capacity building; Sabka Sath, Sabka Vikas
Practice MCQs 5 questions
What fiscal deficit target, as a share of GDP, did the Union Budget 2026-27 set for 2026-27?
Show answer
Correct answer: B — 4.3%
The fiscal deficit in BE 2026-27 is estimated at 4.3% of GDP; RE 2025-26 is 4.4%.
According to the Union Budget 2026-27, what is the Centre's debt-to-GDP ratio estimated at in BE 2026-27?
Show answer
Correct answer: C — 55.6%
Debt-to-GDP is estimated at 55.6% in BE 2026-27, down from 56.1% in RE 2025-26.
What is the total expenditure estimated in the Union Budget 2026-27?
Show answer
Correct answer: D — ₹53.5 lakh crore
Total expenditure is estimated at ₹53.5 lakh crore in BE 2026-27; ₹49.6 lakh crore is the RE for 2025-26.
Consider the following about the Union Budget 2026-27: 1. The government says India is on track to bring the debt-to-GDP ratio to 50±1% by 2030-31. 2. The fiscal deficit for 2025-26 in the Revised Estimates was higher than the Budget Estimate of 4.4%. Which of the above is/are correct?
Show answer
Correct answer: A — 1 only
Only 1 is correct. RE 2025-26 kept the fiscal deficit at par with BE 2025-26, at 4.4% of GDP.
The Union Budget is constitutionally the 'annual financial statement' laid before both Houses of Parliament. Which Article of the Constitution provides for it?
Show answer
Correct answer: B — Article 112
Article 112 requires the President to cause a statement of estimated receipts and expenditure for each financial year — the annual financial statement — to be laid before both Houses.