19 Jan 2026 | 3 Mins Read

Fiscal deficit and market borrowing explained for Budget day

Flipitmoney

India's budget analysis focuses on gross/net borrowing and fiscal deficit. Gross borrowing affects 10-year government security yields, impacting equity valuations in banks, NBFCs, real estate, and infrastructure. Fiscal deficit, driven by capex or other factors, affects market perception of growth durability and fiscal transparency.