Budget 2026 To Prioritize Defence, Capex And Fiscal Discipline

The upcoming Union Budget 2026 is expected to strike a careful balance between growth and fiscal prudence. With geopolitical tensions and global economic uncertainties shaping India’s priorities, the government is likely to focus on strengthening defence capabilities, boosting capital expenditure, and expanding infrastructure projects. At the same time, fiscal discipline will remain central to ensure sustainable growth.  

Defence spending is set to be a major highlight, as experts point to the need for investments in advanced technologies, cyber security, and space defence. Infrastructure development, including railways, power, and affordable housing, will also receive significant allocations. The government is expected to continue its push for capital expenditure to crowd in private investment, while maintaining fiscal consolidation to reassure markets and rating agencies.  

Key highlights from the announcement include  

• Budget presentation scheduled for February 1, 2026, by Finance Minister Nirmala Sitharaman.  
• Defence expenditure to be prioritized, with focus on modern technologies and security challenges.  
• Capital expenditure to remain a growth driver, encouraging private sector participation.  
• Infrastructure development in railways, power, and housing to receive higher allocations.  
• Fiscal discipline emphasized to balance growth with consolidation.  
• Social welfare schemes to be aligned with fiscal prudence amid global uncertainty.  

Industry experts note that the government’s cautious approach reflects the need to sustain growth momentum without compromising fiscal health. The focus on defence and infrastructure is seen as critical for long-term resilience, while fiscal discipline ensures India remains on track for sustainable economic expansion.  

Sources: Times of India, Ommcom News, IANS