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India faces fiscal balancing challenge in FY26 planning
India’s FY26 fiscal planning is challenged by slower tax growth, placing greater emphasis on non-tax revenues and disciplined capital spending.
India’s fiscal outlook for FY26 is facing pressure from slower tax revenue growth, increasing the importance of non-tax receipts and capital expenditure discipline. Policymakers are balancing deficit targets alongside infrastructure spending priorities as the economy aims to sustain growth above 8%. Managing fiscal consolidation while supporting development goals remains a key policy focus.