Government Targets Lower Debt-to-GDP Ratio in FY27, Announces Multiple Budget Initiatives

Debt-to-GDP Ratio Projected to Decline in FY27​

The government has proposed to reduce the debt-to-GDP ratio to 55.6 percent in FY27, down from 56.1 percent in the current financial year, Finance Minister Nirmala Sitharaman said on Sunday while presenting the Union Budget 2026-27 in the Lok Sabha.

₹5,000 Crore Allocation for CITY Economic Regions​

As part of the Budget proposals, the Centre has earmarked ₹5,000 crore over five years for the development of CITY Economic Regions (CERs). The allocation is aimed at supporting regional economic growth through focused infrastructure and planning initiatives.

41 Percent Tax Devolution Formula Retained​

The Finance Minister also announced that the government has accepted the recommendations of the 16th Finance Commission, retaining the 41 percent tax devolution formula for sharing central taxes with states.

Buddhist Circuit Development in Northeast​

A new scheme will be launched for the development of the Buddhist circuit in the Northeast, with a focus on preserving temples and monasteries in the region. The initiative aims to strengthen cultural and heritage infrastructure.

Support for Artificial Limbs Manufacturing​

The Budget also proposes support for the Artificial Limbs Manufacturing Corporation of India to scale up production of assisted devices for divyangjan, with the objective of improving access to mobility and support aids.

These announcements form part of the broader fiscal and development roadmap outlined in the Union Budget 2026-27, presented in Parliament on Sunday.