IGI Logo

Below the Quote on Budget 2026 by Rajkumar Singhal, CEO of Quest Investment Managers

The Union Budget 2026-27 lays out a balanced roadmap focused on capital expenditure-led growth, capital market reforms, foreign investment inflows, and inclusive, human-centric development.

"The Union Budget 2026-27, presented by Finance Minister Nirmala Sitharaman, is a strategic fiscal roadmap aimed at long-term economic structural reforms through a record capital expenditure of ?12.2 lakh crore and a narrowed fiscal deficit target of 4.3% of GDP. To curb speculative trading, the government has hiked the Securities Transaction Tax (STT) on futures to 0.05% and options premium to 0.15%, while share buybacks are now taxed as capital gains rather than dividends. The Union Budget-FY27 has given more focus on attracting foreign investments, especially from the NRIs and Overseas Citizens, by simplifying FEMA rules and increasing limits under portfolio schemes.

Another big announcement is the tax holiday for cloud services and data centre businesses that are catering to domestic clients. It will create huge employment opportunities in India and attract a significant amount of foreign capital.

To enhance the bond market, the budget has announced financial support to municipal bond issuers, and a total return bond swap facility to corporate bond issuers. The Minimum Alternative Tax (MAT) and STT have also been streamlined and reduced to support capital markets.

In manufacturing, the "Biopharma SHAKTI" initiative receives a ?10,000 crore outlay to build a domestic biologics ecosystem, complemented by an increased electronics components manufacturing fund of ?40,000 crore and duty exemptions for critical minerals. Strategic infrastructure projects include seven high-speed rail corridors and 20 new national waterways, alongside the complete removal of the Rs 10 lakh value cap for courier exports to assist MSMEs. Additionally, the budget offers significant humanitarian relief by exempting 17 cancer drugs from basic customs duty and granting a one-time disclosure scheme for small taxpayers with undisclosed foreign assets below ?1 crore.

Overall, the budget has tried to focus on human-centric development by focusing on the 'poor, underprivileged, and disadvantaged' through targeted interventions in health (NIMHANS-2), education, and women’s entrepreneurship (SHE Marts)."

Above views are of the author and not of the website kindly read disclaimer