The Finance Ministry’s FY2026-27 fiscal statement continues a debt path established in the Union Budget 2025-26, targeting Central Government debt at 50±1% of gross domestic product (GDP) by FY2030-31. The goal gives the government a medium-term benchmark alongside the annual fiscal deficit, which the ministry uses to steer its debt plan.
The 2025-26 budget placed the endpoint on March 31, 2031, and the subsequent statement retained the same range. The published goal concerns Central Government debt; it is not worded as an overall national-debt target.
For FY2026-27, the ministry estimates that the debt ratio will be 55.6%, compared with 56.1% in FY2025-26. The government set a fiscal deficit target of 4.3% of GDP for the current fiscal year, giving it an annual benchmark within the longer debt-reduction plan.
Separately, the Press Trust of India (PTI) reported that Finance Minister Nirmala Sitharaman told reporters in Tiruchirappalli on Oct. 26 that “the national debt will be limited to 50 per cent of the GDP” by 2030. Her reported remarks refer to “national debt” and say “by 2030”; the budget documents specify Central Government debt and a FY2030-31 deadline.
The Finance Ministry says a lower debt ratio would ease interest costs over time and leave more funds for priority spending. Its budget strategy also cites continued capital expenditure and the need to retain room to respond to global economic events.
The official 50±1% range places the goal between 49% and 51% of GDP. FY2030-31 ends March 31, 2031, the deadline set for the published debt path.
