Centre likely to stay on fiscal consolidation path in FY26, targets 4.5 pc fiscal deficit: Report

New Delhi [India], January 21 (ANI): The Centre is expected to continue its fiscal consolidation efforts in FY26, with a fiscal deficit target of 4.5 per cent of GDP, according to a report by Emkay Research.

For FY25, the report noted that the fiscal deficit is estimated to track close to 4.7 per cent, while states are likely to record a fiscal deficit of 3.2 per cent of GDP.

It said "we do not see the Centre deviating fr