NEW DELHI: Finance Minister Nirmala Sitharaman on Wednesday said that reducing the country’s debt-to-GDP ratio will be the "core focus" for the government in the next financial year (2026-27).
Speaking at a media event here, Sitharaman stressed that it is crucial to bring down the debt-to-GDP ratio, which crossed 60 per cent during the Covid period.
"It is already coming down, but we need to reduce it further, and this will be a core focus in the next financial year, " the Finance Minister said, noting that RBI documents and studies show worrisome debt-to-GDP ratios in some states.
"Unless managed within FRBM (Fiscal Responsibility and Budget Management Act) limits and high-interest debt is reduced, states borrow to service loans, not development -- a poor fiscal play. This threatens the 10-year momentum for Viksit Bharat by 2047, " she pointed out.