The Finance Minister says India remains among a small group of countries pursuing fiscal consolidation, while balancing deficit reduction with growth and public spending.
Finance Minister Nirmala Sitharaman said India is among a small group of countries actively trying to narrow fiscal deficits, arguing that the government’s borrowing path has improved since the pandemic and that the country is on course to bring debt down to 50% of gross domestic product by 2030. Speaking in Tiruchi after attending the platinum jubilee celebrations of Seethalakshmi Ramaswami College, her alma mater, Sitharaman said the Centre had kept to a steady course of fiscal consolidation despite the economic shock of COVID-19 and the wider pressures that followed. Business Standard and other reports said she pointed to the annual Budget numbers as evidence of that commitment, while recent coverage has placed the 2026-27 fiscal deficit target at 4.3% of GDP, underlining the government’s continuing emphasis on restraint alongside growth.
Sitharaman said the pandemic, conflict in West Asia and higher fuel prices had all complicated efforts to ease inflation and support household incomes, but insisted that India had still managed to make progress on public finances. According to the accounts published by LiveMint and others, she argued that international organisations have recognised India’s comparatively disciplined approach to debt management. She also said the government was working to raise per capita income, suggesting that fiscal tightening would remain part of a broader economic strategy rather than an end in itself.
Her remarks came against a backdrop of debate over the Union government’s fiscal stance, with reports this week noting that the administration sees the debt-to-GDP ratio as a key medium-term anchor. The Finance Minister said the goal of limiting national debt to half of GDP by 2030 remained intact, and that the path to that target would continue through budgetary discipline. Coverage from NDTV and government-focused business outlets said the broader plan is to reduce the deficit without cutting back on capital spending or social support, reflecting an attempt to balance consolidation with growth.
Sitharaman declined to comment on Tamil Nadu’s borrowing position, saying it would not be appropriate for a Union minister to assess one state’s finances in isolation. She added that questions about the state’s fiscal situation should be taken up in the Assembly by the Opposition, where they could be debated in detail. On the rupee, she said stability depended on several factors and noted that the Reserve Bank of India was working to shield the currency from market volatility. She also described protests against the Election Commission’s Special Intensive Revision exercise as a political route, while pointing out that related complaints were already before the Supreme Court.
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