Govt to stick to 60-70 bp fiscal glide path in Budget, aims to bring down deficit below 4.5% by FY26

CNBC-TV18 learns from sources that government is unlikely to deviate from the fiscal glide path in the Budget.

The government is intending to stick to its fiscal consolidation glide path in the coming Budget. This would mean basically a steady reduction in the fiscal deficit aim by 60 to 70 basis points every year, over the next three years.

Now the aim is to bring it down below 4.5 percent by FY26. So 60 to 70 basis points reduction every year, starting with the next financial year.

This year's aim is 6.4 percent, if the government is able to meet or rather maintain this aim, then a 60 basis points reduction next year would mean somewhere around a 5.8 to 5.9 percent deficit aim.

More or less, the government is very clear on the fiscal consolidation glide path, and at least as of now, there is a clear intent to stick to that.