According to Finance Minister Nirmala Sitharaman, the government’s “core focus” for the upcoming fiscal year (2026–2027) will be lowering the nation’s debt-to-GDP ratio. Speaking at a press conference, Sitharaman emphasized how important it is to lower the debt-to-GDP ratio, which surpassed 60% during the Covid era. The Finance Minister stated, “It is already coming down, but we need to reduce it further, and this will be a core focus in the next financial year,” pointing out that some states’ debt-to-GDP ratios are concerning according to RBI studies and documentation.
According to the Finance Minister, the Central government has established objectives for budgetary openness, guaranteeing that fiscal management satisfies accountability requirements. “Debt reduction is the primary priority for the upcoming fiscal year (fiscal deficit remains a target), and we have reduced debt-to-GDP from over 60% post-Covid. The shifting ecosystem is noted by entrepreneurial bankers,” she continued. According to Sitharaman, the government is also attempting to expand the bond market in order to facilitate the inflow of additional capital.
