New Delhi: The government is likely to prioritise medium-term debt consolidation while sustaining a strong push for capital expenditure in the upcoming Union Budget for 2026-27, according to pre-Budget expectations outlined by rating agency ICRA.
The upcoming budget assumes significance, as it will be the first to align with the recommendations of the 16th Finance Commission, which will determine fiscal transfers between the Centre and states for the next five years, the rating agency has asserted.
ICRA expects the Centre’s fiscal deficit to be capped at around 4.3 per cent of GDP in 2026-27, marginally lower than the 4.4 per cent budgeted…