New Delhi, Jan. 29 -- India's union Budget for 2026-27 is expected to strike a careful balance between fiscal consolidation and growth support, as heightened global uncertainty, volatile financial markets and rising commodity prices weigh on economic outlooks, according to a research report by State Bank of India (SBI).
SBI Research projects nominal GDP growth of around 10.5-11% for FY27, factoring in the potential spillover of higher global commodity prices into wholesale inflation.
Based on this assumption, the fiscal deficit is expected to be budgeted at about 4.2% of GDP, continuing the government's medium-term path of fiscal consolidation.
The report estimates net central government borrowing at Rs 11.7 lakh crore in FY27, with gros...