Economic Survey 2026: India an oasis of macro stability in a volatile global environment, says CEA

The goal is to cut the combined fiscal deficit of the Centre and states to about 6% in the medium-to-long term. The unconditional physical transfers that many states are pursuing today do have a useful short-term role. However, sustaining growth requires careful re-prioritisation within revenue spending by states so that short-term income support does not erode the very investments on which inclusive, medium-term prosperity ultimately rests, says V Anantha Nageswaran.