The government is pivoting fiscal policy from rigid deficit targets to a medium-term debt-to-GDP ratio focus starting April 2026, creating fiscal space for sustained public investment in infrastructure and job creation while maintaining discipline below 60% debt levels. This pragmatic reform, paired with GST rationalization and customs overhaul for lower compliance costs, aims to boost MSME competitiveness, revive middle-class spending via tax exemptions, and counter global trade uncertainties, with experts forecasting 7.5-7.8% growth in FY26 supported by RBI liquidity measures and rural demand revival.
Union Budget 2026 Signals Shift to Pro-Growth Fiscal Framework with Debt Targets
