Economic Survey 2025-26: Centre remains well on track to achieve 4.4% fiscal deficit target for FY26
The Hindu
The Economic Survey 2025-26 confirms India's fiscal discipline, projecting a 4.4% deficit target achieved through public investment and consolidation.
The government is well on track to meet the fiscal deficit target of 4.4% of GDP estimated for the current financial year based on broad trends, the Economic Survey 2025-26 tabled in Parliament on Thursday (January 29, 2026) said.
According to the survey prepared by Chief Economic Advisor (CEA) V. Anantha Nageswaran and team, the central government's fiscal trajectory stands out for combining consolidation with sustained public investment, earning three sovereign rating upgrades this year.
Economic Survey 2025-26 LIVE updates
Between FY20 and FY25 (Provisional Actual), the share of capital spending in the total central government expenditure increased from about 12.5% to 22.6%, while effective capex as a share of GDP rose from roughly 2.6% to 4%, the survey said.
Even as States are overshooting their revenue deficit, the central government, through its Special Assistance to States for Capital Expenditure/Investment (SASCI), has successfully incentivised States to maintain capital expenditure at around 2.4% of GDP, it said, adding the expansion of unconditional cash transfers across several States has contributed to rising revenue expenditure, with implications for fiscal space and public investment at the State level.
"Based on the broad trends observed during the year, the central government remains well on track to achieve its envisaged fiscal consolidation path, aiming to attain a fiscal deficit target of 4.4% of GDP in FY26," it said.
Learn how to choose the best personal loan lender by evaluating eligibility, interest rates, and borrowing experience.
Discover why pension planning is essential in modern India to ensure financial security and peace during retirement.
The U.S. has launched two investigations under Section 301 of the Trade Act of 1974 against India and other economies to examine practices that may be ‘unreasonable or discriminatory and burden or restrict U.S. commerce’. One probe examines whether countries, including India, are using excess manufacturing capacity to export to the U.S. in a manner that hurts American businesses, while another looks at whether countries have taken ‘sufficient steps’ to prohibit imports of goods produced with forced labour.
NHAI raises annual pass fee to ₹3,075 from April 1, 2026, streamlining toll payments for FASTag users.
The U.S. probes forced labour in global supply chains, scrutinizing China and India's exports, warns the Global Trade Research Initiative.
The Hindu collection of images of the LPG crisis: War lights a kitchen fire
The company, which launched its IPO in 2020, is now listed on the National Stock Exchange as well as the Bombay Stock Exchange.
Explore the Essential Commodities Act's role in addressing India's gas crisis and its impact on various sectors.
Star Health Insurance plans to boost AI-driven claim settlements from 20% to 50% within two years, investing heavily in technology.
The iron ore production has increased by nearly two-thirds since 2015
Benchmark indices fell 2% as high crude oil prices and FII selling pressures impacted market sentiment on March 14, 2026.
Follow The Hindu LIVE for updates on LPG crisis and crude oil prices due to the escalating Iran-Israel war in West Asia.
ICRA projects integrated sugar mills will see 5-8% revenue growth in FY26 due to improved cane supply and stable prices.