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Government Eyes Moderate Nominal GDP Growth Target
The government may target 10–10.5% nominal GDP growth in FY27, balancing inflation risks with fiscal and capital spending priorities.
Ahead of the FY27 Budget, the government is considering pegging nominal GDP growth at 10–10.5%, factoring in expectations of CPI inflation staying above 4%. Officials are weighing fiscal consolidation against the need for capital expenditure support. Economists note that higher inflation assumptions could allow more spending headroom, but global risks and commodity price volatility remain key uncertainties influencing budget planning.