Union Budget 2026–27: Growth Orientation with Fiscal Prudence

Union Budget 2026–27: Growth Orientation with Fiscal Prudence

The Union Budget 2026–27 will be presented in the Lok Sabha on 1 February 2026 by Nirmala Sitharaman, with the Economic Survey preceding it on 29 January. The budget comes at a time when India is positioned as one of the world’s fastest-growing major economies, with projected real GDP growth of around 7.4% for FY 2025–26 and relatively moderate inflation compared to global peers.

A key expectation from the Budget is the continuation of growth-supportive policies alongside fiscal discipline. The government has committed to maintaining the fiscal deficit at 4.4% of GDP for FY 2025–26, and analysts anticipate a gradual consolidation path rather than abrupt tightening. This reflects a calibrated approach—supporting public investment while safeguarding macroeconomic stability.

Another major focus area is tax certainty and simplification. Industry stakeholders have sought rationalisation of TDS provisions, reduction in litigation, and greater predictability through extended advance ruling validity, particularly in customs and indirect taxation. Such reforms aim to improve ease of doing business and investor confidence.