Minister of State for Finance Pankaj Chaudhary Announces Debt-to-GDP Ratio at 58.2% for FY26, Missing Target by 210 Basis Points

Key facts

• India's debt-to-GDP ratio reached 58.2 per cent in the financial year 2025-26, missing the government's budgeted target of 56.1 per cent by 210 basis points.
• The central government's fiscal deficit declined from 9.2 per cent of GDP in 2020-21 to 4.4 per cent in 2025-26.
• The union government's total outstanding liabilities moderated from 61.5 per cent during the pandemic to 58.2 per cent as of 31 March 2026.
• The total debt of the Centre stood at Rs 201.17 lakh crore as of 31 March 2026 on a provisional basis.
• The debt-to-GDP ratio slippage followed a downward revision in nominal GDP after the introduction of the new series with FY23 as the base year.
• The ratio of debt service to revenue receipts declined from 41.6 per cent in 2020-21 to 37.6 per cent in 2025-26.
• The union government's debt burden is projected at Rs 228.27 lakh crore in FY27, compared to Rs 211.06 lakh crore in FY26.
• The government aims to reduce the debt-to-GDP ratio to 50 per cent by FY31, with a permitted deviation of one percentage point on either side.