Image Source: Economic Times
The Union Budget 2026–27, presented by Finance Minister Nirmala Sitharaman, projects nominal GDP growth at 10% and a fiscal deficit target of 4.3% of GDP. With capital expenditure set at ₹12.2 lakh crore, the government emphasizes infrastructure, manufacturing, and services while adopting a cautious approach to debt and deficit management.
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India Charts a Measured Path to Economic Expansion in FY27
The Union Budget 2026–27 reflects India’s cautious yet ambitious approach to building tomorrow’s economy. Against a backdrop of global volatility, supply chain realignments, and moderating inflation, the government has opted for realistic projections and disciplined fiscal management.
Notable Updates
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Nominal GDP growth: Estimated at 10% for FY27.
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Real GDP growth: Projected at 6.8–7.2%, supported by strong macro fundamentals.
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Fiscal deficit: Targeted at 4.3% of GDP, slightly lower than FY26’s revised 4.4%.
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Debt-to-GDP ratio: Expected to moderate to 55.6%.
Major Takeaways
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Capital expenditure: ₹12.2 lakh crore allocated for infrastructure, technology, and manufacturing.
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Borrowings: Gross market borrowings pegged at ₹17.2 lakh crore; net borrowings at ₹11.7 lakh crore.
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Expenditure: Total spending estimated at ₹53.47 lakh crore, up 7.7% YoY.
Important Points
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The Budget emphasizes Yuva Shakti-driven growth, focusing on youth, innovation, and services.
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Analysts note the government’s preference for moderate deficit reduction rather than abrupt fiscal tightening.
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The cautious stance ensures macro stability while sustaining growth momentum.
Sources: Reuters, Business Standard, Invest India, PRS Legislative Research
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