Yet beneath the language of consolidation and growth lies a layered fiscal reality that warrants deeper scrutiny. The fiscal deficit ratio is also moderating after earlier expansionary pressures. Capital expenditure has risen sharply — from ₹40,635.72 crore in 2025-26 to ₹48,697.71 crore in 2026-27 — an increase of nearly ₹8,000 crore in a single year. Interest payments remain a significant component of revenue expenditure, compressing fiscal space. The quality of capital expenditure will ultimately determine fiscal sustainability.

Source: The Hindu March 10, 2026 07:55 UTC