Finance minister Sitharaman says will adhere to fiscal deficit target for FY26

Finance Minister Nirmala Sitharaman on September 5 said that the central government will meet its fiscal deficit target of 4.4 percent of the GDP for FY26, while capital expenditure will be conducted as per the estimates in the Budget.

“At this point, I can say with confidence that capex of government will not come down, it will be completed as per the Budget estimated timeline. And so will the fiscal deficit, this is the last point of my gliding path, I will adhere to it,” she said in an interview to Network 18 Group Editor-In-Chief Rahul Joshi.

India’s is targeting a fiscal deficit of 4.4 percent of the GDP for 2025–26, lower than the revised estimate of 4.8 percent in FY25, while capital expenditure (capex) at Rs. 11,21,000 crore is up 10 percent over the revised aim of Rs. 10,18,000 crores for FY25