Published on: February 17, 2026

BUDGET HIGHLIGHTS OF 2026-27: DEFICITS

BUDGET HIGHLIGHTS OF 2026-27: DEFICITS

  • The budget deficit: Instrument of fiscal management.
  • The different facets of the budget deficit= the different nature of fiscal imbalances.
  • The annual budget indicates three types of deficits, viz. revenue, fiscal, and primary.
  • Fiscal Deficit = Budget Deficit + Total Borrowing of the Government
  • Revenue Deficit = Revenue Receipts – Revenue Expenditure
  • Effective Revenue Deficit = Revenue Deficit – Grants for creation of capital assets
  • Primary deficit = Fiscal deficit – Interest payment

 

Deficits

 

ESTIMATES
Revenue deficit 

Targeted at 1.5% of GDP, similar to the revised estimate for 2025-26 (1.5% of GDP).

 

Fiscal deficit 

Targeted at 4.3% of GDP in 2026-27, lower than the revised estimate for 2025-26 (4.4% of GDP)