Budget 2026-27: Government Proposes 4% Growth And 8.2% Inflation Targets
- The government has proposed a 4% GDP growth target and 8.2% inflation target for FY2026-27.
- Overall investment is expected to reach 15% of GDP, with private investment targeted at 10.3%.
- Agriculture, industry and services sectors are all projected to record stronger growth next year.
The federal government has proposed a range of economic targets for the fiscal year 2026-27, aiming to boost growth, encourage investment and maintain control over inflation as part of its broader economic strategy.
According to key budget proposals, the government has set a gross domestic product (GDP) growth target of 4 percent for the next fiscal year. The target reflects efforts to strengthen economic activity across major sectors and support a sustained recovery in business and investment.
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The budget framework also proposes an inflation target of 8.2 percent, indicating the government’s intention to keep price pressures under control while supporting economic expansion.
Sector-wise growth projections show that agriculture is expected to remain a key contributor to the economy, with a growth target of 3.8 percent. The industrial sector has been assigned a growth target of 4 percent, while the services sector is projected to grow by 4.2 percent during the upcoming fiscal year.
Large-scale manufacturing, considered one of the most important indicators of industrial performance, is expected to expand by 4.5 percent under the proposed economic plan.
The government has also set ambitious investment goals for FY2026-27. According to the budget documents, total investment is targeted at 15 percent of GDP, reflecting efforts to increase economic activity and improve productive capacity across various sectors.
To support this objective, the government aims to achieve a national savings rate of 14.3 percent, providing additional resources for investment and development.
The proposed framework further outlines plans to raise public investment to 3 percent of GDP. At the same time, private sector investment is expected to play a major role in economic growth, with a target of 10.3 percent of GDP.
Officials believe that achieving these targets will require improved business confidence, stable macroeconomic conditions and continued reforms aimed at encouraging domestic and foreign investment.
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