New Delhi, Jan. 30 -- The Government will focus on fiscal consolidation and growth in the Union Budget, says a research report by the Union Bank of India.

The report says government will aim to reduce the fiscal deficit to 4.5 per cent of Gross Domestic Product (GDP) in the Financial Year 2026 (FY26), down from an estimated 4.8 per cent in FY25.

"We expect absolute fiscal deficit to increase from RE of Rs.15.7 lakh crore to Rs.16.2 lakh crore in FY26," added the report.

The fiscal target is in line with the government's roadmap for achieving macroeconomic stability and ensuring manageable public debt dynamics.

Government is likely to remain committed to its fiscal consolidation path, with a steady reduction in the fiscal deficit over ...