New Delhi, Feb. 2 -- The Union Budget's continued focus on capital expenditure and manufacturing is a positive, but a slower pace of fiscal consolidation and higher market borrowings are disappointing, according to investment bank Nomura.

Presenting the Union Budget, Finance Minister Nirmala Sitharaman has pegged the fiscal deficit at 4.3 per cent of GDP for 2026-27, down from the 4.4 per cent target for 2025-26.

The difference between total revenue and total expenditure of the government is termed the fiscal deficit. It indicates the total borrowings the government may need.

The government had intended to bring the fiscal deficit below 4.5 per cent of GDP by the financial year 2025-26 and is on track to achieve it.

Nomura, in a repor...