Budget 2026 preview: Morgan Stanley sees FY27 fiscal deficit target at 4.2%
Morgan Stanley predicts India's Union Budget 2026 will prioritize spending on consumption and job creation, while also implementing structural reforms. The government plans to decrease fiscal deficit to 4.2% of GDP by FY27 and reduce debt to 50% of GDP by FY31. GDP growth is expected to reach 6.5% in FY27 due to domestic consumption, while inflation will remain in line with the RBI's target.