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India’s FY26 fiscal deficit likely to stay near budgeted levels
India’s FY26 fiscal deficit is expected to stay near budgeted levels, aided by stable revenues and controlled spending growth.
India’s fiscal deficit for FY26 is expected to remain at or below 4.4% of GDP, supported by steady tax collections and controlled expenditure growth, according to PwC estimates.Higher capital spending and infrastructure investment could be balanced by improved revenue buoyancy. The outlook provides policymakers with room to maintain fiscal discipline while supporting economic growth.