Union Budget 2026: Fiscal policy to turn pro-growth as government moves to target debt-to-GDP, economists say
First Bank(US:FRBA) The Economic Times·2026-01-21 16:13Until now, the government targeted the fiscal deficit, which will be lowered to a targeted 4.4% of GDP for the year ended March 2026 from 9.2% in 2020-21. The shift to debt-to-GDP as the key fiscal measure will result in a more modest pace of tightening, supporting growth, economists said.Also Read: A calm Budget face hides tougher fiscal choices ahead for India "We believe government will look to target 55% of GDP as its debt target in 2026-27," economists from Bank of America Securities said in a not ...