FM Nirmala Sitharaman’s Big Claim: From Covid Chaos To Fiscal Discipline

At a time when many economies are still struggling to rein in fiscal indiscipline post-COVID, Finance Minister Nirmala Sitharaman says India is right on track to meet its fiscal deficit targets. Speaking at Stanford University’s Hoover Institution, FM Sitharaman highlighted that despite COVID pushing India’s fiscal deficit to record highs, the Modi government laid out a clear glide path in 2021 — aiming for under 4.5% by FY26 — and has stuck to it without deviation. According to her, fiscal deficit was under control and this has been achieved year after year. She added that India has reduced debt-to-GDP from 62% to 57.4% in just four years and plans to bring it further down to 50% by 2030, even as many developed nations carry 100%+ debt loads. FM Sitharaman credited PM Narendra Modi’s governance style, stressing accountability in public spending and value for taxpayers’ money as non-negotiables.