<h1>Government Targets 50% Debt-GDP Ratio by 2031; Fiscal Deficit to Drop Below 4.5% by FY26 Under New Strategy</h1> The government plans to reduce the debt-GDP ratio to about 50% by March 2031, down from the current 57.1%. Finance Minister Nirmala Sitharaman outlined a strategy in the Budget to decrease the fiscal deficit to 4.4% of GDP by FY26, from an estimated 4.8% this year. The revised Fiscal Responsibility and Budget Management Act mandates a fiscal deficit of less than 4.5% by FY26. The government aims for a debt-GDP ratio of about 56% by FY26 and will adjust fiscal policies annually to achieve a 50+/-1% ratio by the end of the 16th Finance Commission cycle in 2031.