Union Finance Minister Nirmala Sitharaman Reaffirms Commitment to Fiscal Deficit Reduction

Union Finance Minister Nirmala Sitharaman stated on Monday that the Centre is firmly committed to reducing the fiscal deficit, pointing to the trajectory of the annual budgets as clear evidence of this objective.

Addressing concerns regarding national debt during a media interaction, Sitharaman acknowledged that economies globally have faced debt challenges in the period following the COVID-19 pandemic.

Highlighting the government's long-term targets, she stated that the national debt will be restricted to 50 percent of the Gross Domestic Product (GDP) by the year 2030. The Finance Minister emphasized that continuous measures are being implemented to lower the debt of the Union Government.

Furthermore, Sitharaman mentioned that international organizations have taken note of and acknowledged India’s disciplined approach toward debt management.

"Fiscal discipline and a clear roadmap for debt management are critical pillars for macroeconomic stability. When a government commits to capping national debt at 50 percent of the GDP by 2030, it creates a predictable and stable economic environment. For businesses, entrepreneurs, and investors in the Indian ecosystem, macro-level fiscal prudence translates into better currency stability, controlled inflation, and sustained investor confidence, which are essential for long-term economic growth and capital formation." — Dr. Shishir Gupta, Founder & CEO, StartupLanes