India's Budget 2026 Focuses on Debt Consolidation, Bond Markets, and Agricultural Concerns

As India prepares for Budget 2026-27, fiscal policy is set to shift focus from annual deficits to medium-term debt-to-GDP consolidation, targeting a gradual reduction to about 50% by 2031. Bond markets remain attentive to government borrowing and yield trends amid global volatility, with calls for tax parity on debt mutual funds to deepen bond markets. Meanwhile, farmers seek legal guarantees on minimum support prices amid lingering distrust post-farm law repeal. Experts also debate central banks' roles in managing government deficits and interest rates.