New Delhi, Dec 25 || Apex business chamber CII on Thursday proposed a four-pronged fiscal strategy ahead of the Union Budget 2026-27 that includes debt stability, fiscal transparency, revenue mobilisation and expenditure efficiency.
According to a CII statement, at the core of the roadmap is adherence to the government’s debt glide path targeting 50 per cent (plus or minus 1 per cent) of GDP by FY31. Maintaining Central debt at roughly 54.5 per cent of GDP and the fiscal deficit at 4.2 per cent of GDP in FY27 will preserve macro credibility while supporting growth. Strengthening public finances, however, must extend beyond the Centre to States and Urban Local Bodies (ULBs), whose fiscal positions increasingly shape overall debt dynamics and the durability of macroeconomic stability.
Second, to improve predictability and reinforce institutional credibility, CII recommends reviving the Medium-Term Fiscal Framework with a rolling 3-5 year roadmap for revenue, expenditure and debt.
Third, revenue mobilisation remains central to long-term fiscal sustainability. India’s tax-to-GDP ratio at 17.5 per cent (centre and state combined) remains below that of major emerging economies.