India Projects Fiscal Deficit at 4.2% of GDP and Debt Ratio at 55.1% for FY27

India's fiscal deficit is projected to decline to 4.2% of GDP in FY27, with the central government's debt-to-GDP ratio expected to reduce to 55.1%, reflecting a shift toward a debt-anchored fiscal framework. The upcoming Union Budget will focus on capital expenditure, social infrastructure, and structural reforms amid subdued tax growth and expenditure constraints. Concurrently, the Reserve Bank of India is anticipated to continue its monetary easing with further rate cuts, supporting growth and liquidity ahead of the budget announcement.