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Union Finance Minister Nirmala Sitharaman has said that as an accommodative fiscal stance is being maintained in the near-term to support the economy, the government remains committed to bring the economy on the fiscal consolidation path in the near-to-medium term. She said the Union government fiscal deficit is budgeted at 6.8 percent of GDP in the current year and it will be reduced to 4.5 percent of GDP by 2025-26.

The minister has stated that next year's budget will contain medium-term macroeconomic projections and will include revised Fiscal Responsibility and Budget Management Act (FRBM). She also said the Indian government is ready to provide additional capital to Public Sector Banks (PSBs) as and when needed and the trajectory of inflation is also shifting down more favourably than anticipated.

Sitharaman further said revenue mobilisation would be a key element of medium term fiscal strategy. Streamlining with e-invoicing, Goods and Services Tax (GST) audits, closer scrutiny of returns, and rate rationalisation are all expected to augment GST revenues; rationalised corporate income tax rates are also expected to improve tax compliance and tax buoyancy. She pointed out that the thrust on capital expenditure in infrastructure, including projects on health, education and skill development will continue. She added that enhanced public investment in infrastructure is expected to crowd in private investment and raise potential output and medium-term growth.