FM outlines Rs 53.47 lakh crore outlay, fiscal deficit at 4.3% of GDP
February 12, 2026: Prime Minister Narendra Modi on Thursday lauded Finance Minister Nirmala Sitharaman’s reply in the Lok Sabha to the discussion on the Union Budget, saying she presented a comprehensive vision of how the proposals would drive India’s economic transformation. In a post on X, Modi highlighted her emphasis on reforms, support to MSMEs, skilling initiatives, next-generation infrastructure, and increased focus on healthcare and education.
During her address, Sitharaman stated that the government has proposed a total expenditure of Rs 53.47 lakh crore for the next financial year, marking a 7.7 per cent increase over the current fiscal ending March 31. She added that effective capital expenditure would rise to Rs 17.1 lakh crore, accounting for 4.4 per cent of the GDP, underlining the government’s push for infrastructure-led growth.
The finance minister also stressed fiscal discipline, projecting the fiscal deficit at 4.3 per cent of GDP, or Rs 16.95 lakh crore, for FY27. She noted that reducing the debt-to-GDP ratio remains a priority under the Fiscal Responsibility and Budget Management (FRBM) framework, reinforcing the government’s commitment to macroeconomic stability.