Pankaj Chaudhary: India's debt-to-GDP 58.2% in FY26 (FY2025-26), debt servicing eased
India's debt-to-GDP ratio dipped slightly to 58.2% in FY26 (FY2025-26), down from 58.5% in the previous financial year (FY25 / FY2024-25), according to Minister of State for Finance Pankaj Chaudhary.
The government's total debt hit ₹201.17 lakh crore by March 2026.
On the bright side, the cost of paying off this debt compared to revenue has gone down since the pandemic, hinting at steadier financial management.
Government budgets ₹17.15L/cr for 2026-27 projects
Government spending on big projects reached ₹17.15 lakh crore as a budget estimate for 2026-27, actually topping the fiscal deficit for the year.
During FY21-FY26 (FY2020-21 to FY2025-26), ₹44.03 lakh crore was spent on things like roads, railways, and digital networks.
Looking ahead, total government debt is expected to rise as more funds are pumped into growth-focused projects like PM GatiShakti and National Logistics Policy, moves that are helping create jobs and attract private investment along the way.