New Delhi, January 31 (IANS). Finance Minister Nirmala Sitharaman is going to present the Union Budget 2026-27 in Parliament on 1 February. Economists say that this time in the budget, special attention will be given to the development of defence, infrastructure, capital expenditure (capex), power sector and affordable housing. Along with this, efforts will also be made to maintain a balance between social welfare and financial discipline.
Policymakers will face the dual challenge of driving growth and maintaining fiscal discipline, especially as conditions remain uncertain around the world.
In this budget, an attempt will be made to strike a balance between maintaining the pace of economic growth and keeping the fiscal deficit under control.
Experts say that the budget will also keep in mind the immediate challenges that are arising from the changing global and geopolitical situation.
The government has consistently remained firm on the path of fiscal consolidation, as a result of which the fiscal deficit, which had reached a high of 9.2 per cent during Covid, has been reduced to an estimated 4.4 per cent for FY 2025-26.
According to experts, the government will maintain its financial discipline and no major changes are expected in this direction.
Finance Minister Nirmala Sitharaman will present the 15th budget of Prime Minister Narendra Modi government on February 1. This will be the second full budget after the NDA government comes to power for the third consecutive time in 2024. With this, Nirmala Sitharaman will become the first woman Finance Minister of the country, who will present the budget for the ninth consecutive time.
Experts said that the budget for the financial year 2025-26 was more focused on tax relief to increase the consumption of the middle class, whereas the way to increase consumption in the budget for the financial year 2026-27 may be more selective and limited.
According to the ‘India Strategy’ report of Motilal Oswal Financial Services Limited, this budget will focus more on capital expenditure, especially in those sectors which are considered strategically important due to the current global situation.
According to a report by DBS Bank, investors will keep a special eye on the government’s debt, fiscal deficit and borrowing figures in the next financial year’s budget. The size of borrowing will be very important for the bond market.
A detailed assessment of the economy has been presented in the ‘Economic Survey 2025-26’. It estimates a growth rate of 6.8 to 7.2 percent for fiscal year 2026-27, which is slightly lower than the current year’s rate of 7.4 percent, but better than market estimates.
The special thing is that despite February 1 being a Sunday, the Indian stock markets will remain open. Normal trading session will be held in the stock market on the day of Union Budget 2026-27.
–IANS
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