Union Budget today
New Delhi: As the Union Budget 2026 is set to be presented on Sunday, industry stakeholders across sectors have begun outlining their expectations from the government, hoping that the budget will address pressing economic priorities and growth challenges.
Union Finance Minister Nirmala Sitharaman will present her ninth Budget in Parliament, a significant milestone as the government prepares to lay out its fiscal roadmap for the coming year.
The industry is expecting that the FM will unveil measures to sustain growth momentum, maintain fiscal discipline, and contain reforms that could buffer the economy from global trade frictions, including US tariffs.
It may be mentioned here that the presentation of the budget for the fiscal 2026-27 will be on Sunday, a first in the independent India's history.
Sitharaman's sweeping income tax and GST cuts, together with spending on infrastructure and the RBI's interest rate reductions, have so far helped the Indian economy withstand the punitive 50 per cent tariffs by US President Donald Trump on Indian goods. But now, the FM has to come up with measures to sustain the momentum.
The FY27 budget comes against a complex backdrop. While domestic demand has held up and inflation has moderated from recent highs, global uncertainties - including geopolitical tensions, volatile commodity prices and uneven monetary easing by major central banks - continue to cloud the outlook.
At home, the government faces pressure to boost consumption, accelerate job creation and step up capital spending, while keeping the fiscal deficit on a downward path. The FM may also focus on simplifying regulations and pushing structural reforms to attract domestic and foreign investment.
Despite the tight purse strings, Sitharaman is not expected to cut spending and may include new measures for the poll-bound states -- West Bengal, Tamil Nadu, Kerala and Assam. Some schemes may be re-packaged.
Capex push likely to continue
Capital expenditure is expected to remain the central pillar of the budget.
Over the past few years, the government has sharply increased spending on roads, railways, defence manufacturing, urban infrastructure and logistics to crowd in private investment. For FY27, economists expect another meaningful rise in capex, though at a more measured pace compared to the post-pandemic surge. Railways, renewable energy, power transmission, defence and urban transport are seen as priority areas, with continued support for state-level infrastructure through interest-free loans.
Tax stability over big giveaways
On the tax front, major changes are considered unlikely. The government has repeatedly signalled a preference for stability and predictability, especially in direct taxes. Any tweaks to personal income tax are expected to be incremental, potentially aimed at easing the burden on the middle class to support consu
