In a bold move towards enduring prosperity, the 2026-27 Union Budget marks a shift from knee-jerk relief to visionary long-term planning. Crisil Intelligence’s latest report, unveiled Monday, praises the surge in capital outlays and smarter expenditure allocation.
Gone are the days of pandemic-era quick fixes; today’s focus is on reforms that ease business operations and ensure growth benefits all. As the economy stabilized post-COVID, the need for ad-hoc support waned, paving the way for strategic investments in manufacturing and services.
Fiscal prudence has been key, with deficit reduction allowing bolder horizons. Real GDP is expected to grow 7.4% this year, fueled by pro-consumption measures and tax cuts that boosted disposable incomes. Budgetary continuity in welfare targets job creation and wealth generation for the underprivileged, even as subsidies taper.
Expenditure efficiency shines through: Centre’s capex holds at 3.1% of GDP, totaling 4.4% with state grants. Revenue-to-capex reallocation has been a game-changer, though debt servicing costs loom large. Capex jumps 9% to Rs 12.2 lakh crore, the heftiest in years, equating to 4.4% of GDP.
Looking ahead, FY27 fiscal deficit narrows to 4.3% amid 10% nominal GDP expansion, signaling robust macroeconomic health and investor confidence.