India's Expenditure Secretary V Vualnam acknowledged the ongoing fiscal stress due to disruptions in energy imports through the Strait of Hormuz and the government's recent excise duty cuts on petrol and diesel. He emphasized the government's commitment to fiscal prudence while aiming to maintain a capital expenditure target of ₹12 trillion for FY27, focusing on vital sectors such as highways, railways, and urban development. The excise duty cuts are projected to lead to a fiscal loss of ₹1.5 trillion in FY27, raising concerns about fiscal slippage. The fiscal deficit is anticipated to be 4.3% of GDP in FY27, a slight improvement from 4.4% in FY26. Vualnam also noted the challenges posed by global uncertainties and the need for high-quality expenditure. Additionally, Secretary of the Department of Financial Services M Nagaraju mentioned the establishment of a high-level committee to review the banking sector, aiming to enhance its effectiveness and alignment with India's growth while maintaining financial stability. Nagaraju stressed the importance of a well-functioning bond market to complement bank financing for long-term capital needs.