FM Sitharaman: Reducing Debt-to-GDP Ratio Will Be Government’s Key Focus in 2026–27

• Dec 17 , 2025

New Delhi, Dec 17, 2025

Finance Minister Nirmala Sitharaman on Wednesday stated that reducing India’s debt-to-GDP ratio will be the government’s main priority in the upcoming financial year 2026–27. Speaking to the media in the national capital, she emphasized the need for sustained fiscal discipline to support long-term economic growth and strengthen India’s financial stability.

The Finance Minister noted that India’s debt-to-GDP ratio had exceeded 60 percent during the Covid-19 period but has since started to decline. “It is already coming down, but we need to reduce it further, and this will be a core focus in the next financial year,” she said. Sitharaman also highlighted studies and reports from the Reserve Bank of India that indicate high debt levels in some states, stressing that unchecked borrowing could lead to states taking loans only to service existing debt rather than for development purposes. She warned that such practices...