ЁЯУв Too many exams? DonтАЩt know which one suits you best? Book Your Free Expert ЁЯСЙ call Now!

  • google app store apple app store
  • тЬЦ

      Question

      As per the Union Budget 2026-27, the central government

      has introduced a new primary fiscal anchor. What is this new anchor?
      A Debt-to-GDP ratio Correct Answer Incorrect Answer
      B Revenue Deficit-to-GDP ratio Correct Answer Incorrect Answer
      C Interest Payments-to-Revenue Receipts ratio Correct Answer Incorrect Answer
      D Primary Deficit-to-GDP ratio Correct Answer Incorrect Answer

      Solution

      The government is transitioning toward using the Debt-to-GDP ratio as its primary fiscal anchor to reinforce macroeconomic credibility. It reflects long-term fiscal sustainability, allows greater flexibility during economic shocks, and aligns India with global best practices. The Centre aims to reduce its debt-to-GDP ratio to 50 ┬▒ 1% by March 2031, with an interim target of about 55% in FY2026-27.

      Practice Next
      More Research Questions
      ask-question