Overview

• Chief Economic Adviser V Anantha Nageswaran said the government will stick to the 4.4% FY26 fiscal deficit target with no change to second-half market borrowing.
• The budget set gross bond issuance at ₹14.82 lakh crore for FY26, with ₹8 lakh crore raised in April–September and ₹6.82 lakh crore slated for October–March.
• Net market borrowings from dated securities are estimated at ₹11.54 lakh crore for FY26, with the balance financed through small savings and other sources.
• Nomura expects no extra borrowing and sees scope for a shift toward T-bills and a smaller share of long-maturity bonds when the second-half calendar is detailed.
• Net direct tax collections rose 9.2% to ₹10.8 lakh crore in H1FY26, as the CEA pointed to GST 2.0 and recent tax reliefs as drivers for growth toward the upper end of the 6.3–6.8% range.