... metrics continue a multi-year improvement, reflecting a strong commitment to fiscal discipline. The fiscal deficit narrowed to 0.2% of GDP in the fiscal year ended March 2026 (FY25/26) from 0.8% the prior year. Although Fitch Ratings expects a deterioration in FY26/27 to 0.9% given economic weakness and an increase in expenditures, fiscal consolidation will resume in subsequent years. The fiscal deficit compares favorably to the `B' median of 3.3%. Debt Is High but Shrinking: Debt-to-GDP continues to fall and is projected at 92.2% in FY26/27. This is higher than peers ¡ the `B' median was 53% in 2025 ¡ but shows substantial progress, with central government debt-to-GDP falling around one-third from its peak of 134.6% in FY17/18. The domestic market has been improving but access remains constrained. Further institutionalization of recent fiscal reforms is key for the long-term stability of government finances, considering the country's small...
