India budget walks tightrope between revenue strain, spending needs
MUMBAI, Feb 1 (Reuters) – India’s federal government kept a tight leash on spending in its annual budget for 2026-27, as income and consumption tax cuts announced in the past year weighed on revenues. The government will target a debt-to-GDP ratio of 55.6% for 2026-27, resulting in a fiscal deficit of 4.3% of GDP, Finance Minister Nirmala Sitharaman said on Sunday in a budget that sought to strengthen the manufacturing sector amid a volatile global environment. The modest fiscal consolidation will support economic growth, but hurt bond markets because of large borrowings from the federal government. TAX CUTS PRESSURE REVENUE