India’s Fiscal Tightrope: Defence Surge And Infrastructure Push Challenge Budget 2026 Targets

The Union Budget 2026, due next month, faces mounting pressures from escalating defence and infrastructure demands. BMI, a Fitch Solutions firm, predicts a rise in defence and capital expenditure allocations. This comes as the government juggles fiscal consolidation with domestic ambitions and external threats.India’s fiscal deficit target for FY2026-27 stands at 4.3 per cent of GDP. BMI
The Union Budget 2026, due next month, faces mounting pressures from escalating defence and infrastructure demands. BMI, a Fitch Solutions firm, predicts a rise in defence and capital expenditure allocations. This comes as the government juggles fiscal consolidation with domestic ambitions and external threats.India’s fiscal deficit target for FY2026-27 stands at 4.3 per cent of GDP. BMI
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