New Delhi, May 17 -- India is looking to maintain fiscal discipline backed by higher non-tax revenue, despite simmering global trade tensions and a potential spike in defence spending.

The Centre aims to achieve the fiscal deficit target of 4.4% of gross domestic product (GDP) in FY26 despite uncertainties, two people aware of the discussions said. India's fiscal deficit in FY25 stood at 4.8% of GDP under revised estimates.

The Union budget had set a non-tax revenue target of Rs.5.83 trillion- Rs.47,738 crore from interest receipts, Rs.3.25 trillion from dividends and profits comprising contributions from the central bank, state-run banks, central public sector enterprises (CPSEs), and Rs.2.07 trillion from other non-tax sources.

"This...