Budget Highlights 2026-27 by Sushil Finance
UNION BUDGET 2026-27 : EXECUTIVE SUMMARY
Budget 2026-27: A thread of continuation amidst Vulnerability
The FM created history by presenting the ninth consecutive Budget in a row, resulting in a thread of continuation amidst vulnerability.
FM presented Union Budget 2026-27 amidst the backdrop of a) Geopolitical uncertainty b) Tariff tantrum c) Global reset of relations d) Technological disruption. In light of the same Budget 2026-27 has done an excellent job of balancing vulnerability with focus on Action over Ambivalence, Reforms over Rhetoric and People over Populism. The Budget also aimed at transforming aspiration into achievement and potential into performance.
Union Budget 2026-27 has continued to the fiscal consolidation path by estimating fiscal deficit for FY 2026-27 at 4.4% and budgeting fiscal deficit for FY 2027-28 at 4.30%. Also guiding the Debt to GDP ratio towards 55.60% for FY 2027-28 and gradually reducing it to 50% by 2031. The Budget 2026-27 also remained conservative on the growth, revenue and expenditure projection and the same appears to be realistic.
Union Budget 2026-27 was dedicated to the Youth of the country and the proposals focused around 3 kartavyas: a) Acceleration and sustained economic growth b) Fulfil aspirations of people and c) Vision of – ‘sab ka saath and sab ka vikas’.
The Budget 2026-27 plans to achieve three kartavyas through 1) Enhancing productivity and competitiveness 2) Building resilience to volatile global dynamics 3) Build people’s capacity 4) Making people strong partners in India’s path to prosperity and 5) Ensure that every family, community, region and sector have access to resources, amenities and opportunities for meaningful participation.
The Budget 2026-27 also remained high on ease of doing business, simplicity in taxes, improving cost competitiveness and easing compliance burden of the citizens of the country.
To sum up, The Budget 2026-27 continued the path of reform, fiscal consolidation, ease of doing business and accelerating growth.
The Government’s Budget for 2026-27 is designed to realize the vision of Viksit Bharat (Developed India) through a holistic approach based on three key "Kartavyas" (duties). These three Kartavyasserve as the foundation for the policy framework aimed at transforming India into a global economic powerhouse while ensuring inclusive growth, equity, and social wellbeing.
1. Kartavya One: Accelerating and Sustaining Economic Growth
This Kartavya focuses on achieving accelerated, sustainable economic growth through enhanced productivity, competitiveness, and building resilience to global challenges.
Key Proposals Under Kartavya One:
* Scaling Up Manufacturing in Strategic and Frontier Sectors: Biopharma SHAKTI: Rs 10,000 crore allocation over 5 years to develop India as a global Biopharma manufacturing hub, including 3 new National Institutes of Pharmaceutical Education and Research (NIPER) and upgrading 7 existing institutes. This also includes the creation of 1,000 accredited Clinical Trials sites. It intends to to strengthen the Central Drugs Standard Control Organisation to meet global standards and approval timeframes through a dedicated scientific review cadre and specialists
* India Semiconductor Mission (ISM) 2.0: Expanding capabilities to design full-stack Indian IP, produce materials, and fortify supply chains, with a focus on research and training centers.
* Electronics Components Manufacturing Scheme: An increase in the outlay from Rs 22,919 crore to Rs 40,000 crore to continue capitalizing on momentum.
* Rare Earth Permanent Magnets Scheme: Establishing Rare Earth Corridors in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu to promote mining, processing, research and manufacturing.
* Chemical Parks: Launching a scheme to support States in establishing three dedicated Chemical Parks on a cluster-based plug-and-play model.
* Capital goods: Creation of Hi-Tech Tool Rooms as digitally enabled automated service bureaus that locally design, test, and manufacture high-precision components at scale and at lower cost. A Scheme for Enhancement of Construction and Infrastructure Equipment (CIE) will be introduced to strengthen domestic manufacturing of high-value and technologicallyadvanced CIE. Budgetary allocation Rs 10,000 crore over a 5 year period to create a globally competitive container manufacturing ecosystem.
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