At the July 2024 Budget, the Finance Minister suggested that, from FY27, deficit targets might be set such that the central government’s debt will follow a declining path. In subsequent comments, officials suggested a possible move to target the debt-to-GDP ratio as a potential anchor from FY26. Reports signalled that a 1.0 percentage point reduction in the debt-to-GDP ratio might be sought from FY25-FY26 to reach a more sustainable 50% of GDP. Thereafter, a path of 0.5ppt reduction is likely to reduce the consequent impact on growth. Read more at: https://bfsi.economictimes.indiatimes.com/blog/india-is-it-time-to-expand-the-fiscal-target-framework/117771500?ag=wappchnl&utm_source=wappchnl