Finance Minister Sitharaman Presents Rs 53.47 Lakh Crore Budget for FY27

Union Budget 2026–27 up 7.7 per cent from current fiscal

PTI, February 01, 2026, New Delhi : Finance Minister Nirmala Sitharaman on Sunday presented a Rs 53.47 lakh crore Budget for 2026–27, marking a 7.7 per cent increase over the current financial year ending March 31.

As per the Revised Estimate, the size of the Budget for the current fiscal is Rs 49.64 lakh crore, lower than the Rs 50.65 lakh crore estimated in February 2025. The Budget for fiscal 2024–25 had been Rs 46.52 lakh crore.

The government estimates its total expenditure at Rs 53.47 lakh crore in the next fiscal. Non-debt receipts and total expenditure for 2026–27 are estimated at Rs 36.5 lakh crore and Rs 53.5 lakh crore, respectively, while the Centre’s net tax receipts are projected at Rs 28.7 lakh crore.

“To finance the fiscal deficit, the net market borrowings from dated securities are estimated at Rs 11.7 lakh crore. The balance financing is expected to come from small savings and other sources. The gross market borrowings are estimated at Rs 17.2 lakh crore,” Sitharaman said.

The Finance Minister also stated that the government will meet the fiscal deficit target of 4.4 per cent of GDP for the current fiscal, as projected in the Budget for 2025–26. The fiscal deficit in BE 2026–27 is estimated at 4.3 per cent of GDP, or Rs 16.95 lakh crore.

The GDP for FY 2026–27 is projected at Rs 393,00,393 crore, a 10 per cent increase over the Advance Estimates for FY 2025–26 of Rs 357,13,886 crore released by the NSO, according to Budget documents.

Sitharaman emphasised that the government has been consistently delivering on fiscal commitments without compromising social needs. She noted that the central government had targeted a debt-to-GDP ratio of 50±1 per cent by 2030–31, as indicated in Budget 2025–26.

“In line with this, the debt-to-GDP ratio is estimated to be 55.6 per cent of GDP in BE 2026–27, compared to 56.1 per cent in RE 2025–26,” she said. A declining debt-to-GDP ratio, she added, will gradually free up resources for priority sector expenditure by reducing outgo on interest payments.

Meanwhile, according to the RE for 2025–26, non-debt receipts are pegged at Rs 34 lakh crore, with the Centre’s net tax receipts at Rs 26.7 lakh crore. The Revised Estimate of total expenditure is Rs 49.6 lakh crore, of which capital expenditure accounts for about Rs 11 lakh crore during the current fiscal.