Revenue deficit is a key indicator of the governments fiscal health. A high revenue deficit suggests that the government is borrowing not to invest, but to fund routine consumption.

From infrastructure spending to interest rates, fiscal deficit influences some of the biggest economic outcomes of the Union Budget. Heres a simple five-question guide to understanding why it matters.

As Finance Minister Nirmala Sitharaman prepares to present the Union Budget 2026, attention is centred on five critical pillars that will define the government’s fiscal and economic strategy for FY27.