Budget 2026: Focus to be on capex, job creation; FY27 fiscal deficit seen at 4.2%: Morgan Stanley

Budget 2026: Morgan Stanley expects India’s fiscal consolidation to continue in FY27, albeit at a slower pace, with the central government likely to peg the fiscal deficit at 4.2% of GDP, compared with a targeted 4.4% in FY26. This would mark the shallowest pace of consolidation since FY23.