Nirmala Sitharaman Confident in Achieving Fiscal Deficit Goals by 2026

Finance Minister's Optimism on Fiscal Targets

New Delhi: On Tuesday, Finance Minister Nirmala Sitharaman expressed her strong belief that the government will successfully achieve its fiscal deficit target of 4.4% of GDP for the fiscal year ending in March 2026.

In the Union Budget unveiled in February, the Finance Minister outlined a fiscal deficit of ₹15.69 lakh crore, representing 4.4% of GDP for 2025-26, a decrease from 4.8% in 2024-25.

During a Q&A session at the Diamond Jubilee Valedictory Lecture at the Delhi School of Economics (DSE), Sitharaman stated, “With the support of the Prime Minister and divine guidance, we will meet this fiscal deficit goal. It is a commitment made in Parliament, and I am dedicated to fulfilling it.”

Recent data from the Controller General of Accounts (CGA) indicates that the Centre's fiscal deficit reached 36.5% of the annual target by the end of the first half of FY26.

The Finance Minister is set to present the upcoming Union Budget in February 2026.

Sitharaman also highlighted that the government will now prioritize the debt-to-GDP ratio.

She remarked, “To achieve a developed India, we must focus on reforming and ensuring prudent fiscal management. This is the duty of every finance minister.”

The central government's debt is projected to be 56.1% of GDP in the Budget Estimates for 2025-26, a reduction from 57.1% in the Revised Estimates for 2024-25.

As per the revised Fiscal Responsibility and Budget Management (FRBM) Act, the government is required to lower the fiscal deficit to below 4.5% by the fiscal year 2025-26.

In her address, the minister encouraged citizens to have faith in themselves and the nation's economy.

She stated, “We should not be influenced by those who claim our economy is failing. How can anyone declare a nation of 1.4 billion people as a dead economy? While external criticism may arise, we must recognize and celebrate our own achievements.”