Quote on Budget 2026 by Amit Modani, Senior Fund Manager, Lead - Fixed Income, Shriram AMC
Below the Quote on Budget 2026 by Amit Modani, Senior Fund Manager, Lead - Fixed Income, Shriram AMC
“The government appears to be walking a fine line between driving growth and maintaining macroeconomic stability, gradually tapering support while safeguarding capital expenditure. Markets have welcomed this measured approach. Key highlights include a fiscal deficit target of 4.3% for FY27, signalling a credible path of consolidation, and a medium-term debt to GDP target of 50% by 2031, with FY27 debt to GDP is expected at 55.6%. While gross borrowing at Rs 17.2 lakh crore slightly exceeded estimates, largely due to Rs 5.5 lakh crore in old debt repayments (redemptions), net borrowing at Rs11.7 lakh crore keeps the trajectory stable.
Market expects RBI liquidity support to keep bond yields in check. Overall, this budget balances growth-oriented spending with fiscal prudence, reflecting a strategy likely to sustain investor confidence and market stability.”
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