Finance Minister Nirmala Sitharaman will present the Union Budget 2026–27 on 1 February 2026 and this time the expectations from the budget are very high. The biggest challenge for the government is to maintain fiscal discipline while supporting growth amid global geopolitical tensions, slow growth and market volatility. India’s economy may show around 7.4% growth in FY26, which will be supported by infra spending, services exports and private investment. Slight slowdown in consumption and global risks remain a concern. The focus of Budget 2026 is expected to be on Capital Expenditure, where infra spending could go up to Rs 12–13 lakh crore, which will include roads, railways, defence, renewable energy and urban infrastructure. An attempt may be made to keep the fiscal deficit in the range of 4.2–4.4% in FY27. Emphasis may also be on raising resources from targeted schemes, market reforms, ease of doing business, digital systems, asset monetization and RBI dividend for rural demand, jobs and skill development.
What will change from Budget 2026? Government’s Master Plan on Growth vs Fiscal Discipline. Money Live | What will change with Budget 2026? The government’s master plan on Growth vs. Fiscal Discipline
