Union Budget 2026-27: A Blueprint for Sustainable Growth and Economic Balance
The Union Budget for the 2026-27 fiscal year is scheduled to be presented on Sunday, February 1, with the government anticipated to place significant emphasis on job creation, agricultural development, inclusive manufacturing, and digital transformation, according to expert analysis. This budget is expected to serve as a strategic roadmap for fostering sustainable economic growth while addressing pressing national challenges.
Expert Expectations: Key Sectors in Focus
Osmania University Professor Satish Raikindi has outlined a comprehensive set of expectations for the upcoming budget. He suggests that the government is likely to prioritize several critical areas to support long-term, sustainable development. Job creation, agricultural advancement, inclusive manufacturing, and digital transformation are projected to be at the forefront of the budgetary agenda.
Professor Raikindi elaborated that key sectors such as defence, infrastructure—including railways—MSMEs, rural development, and the green economy could witness heightened focus and substantial investment. The present Indian economy plays a vital role, and for sustainable growth, we can look forward with optimism, he stated, highlighting the government's prioritization of rural-urban integration and the green economy alongside the aforementioned areas.
He further noted that the public is anticipating relief in domains such as taxation, housing, healthcare, employment, and education. The budget is expected to incorporate measures aimed at mitigating prevailing challenges and providing tangible benefits to the common citizen, thereby driving holistic growth across the nation.
Addressing Investment Imbalances and Regional Disparities
Another Osmania University professor, M. Ramulu, raised significant concerns regarding India's current investment patterns ahead of the Union Budget. He pointed out that investment remains heavily skewed towards capital-intensive industries, particularly manufacturing and large industrial projects that yield higher growth and profits.
This approach, according to Professor Ramulu, has marginalized smaller segments such as startups, small-scale units, and area-based industries. Most capital is flowing into capital-intensive industries where growth rates and profits are high, he observed, stressing the need for these investments to percolate to smaller sectors.
He also highlighted the concentration of investments in capital cities and major metropolitan centres, which exacerbates environmental stress, pollution, and population pressure. A more balanced geographical spread of economic activity is essential. Professor Ramulu expressed hope that the budget would promote investments across all states, particularly in agro-based industries, small startup manufacturing units, and decentralised industries, rather than focusing exclusively on large-scale projects.
Welfare Scheme Targeting and GST Distribution Concerns
Professor Ramulu advocated for sharper targeting of welfare schemes, arguing that benefits often accrue to those who are already economically secure, while a substantial portion of the poor remains excluded. Better identification of beneficiaries would help reduce wasteful expenditure and allow funds to be redirected towards productive investments, especially in education and healthcare, beyond mere food subsidies.
On the Goods and Services Tax (GST), Professor Ramulu acknowledged the advantages of a unified tax regime but flagged concerns over revenue distribution. He noted dissatisfaction among states like Tamil Nadu, Karnataka, and Telangana, which demand a larger share as the Centre collects a major portion and allocates a smaller proportion to states.
Balanced development across all states is essential, he emphasized. Instead of vertical expansion, he suggested a horizontal approach through lower tax rates to widen the tax base by incentivizing more people to voluntarily disclose their income and participate in the system.
Call for Balanced Growth and Resource Rationalisation
Professor Ramulu also addressed the expanding role of private education and industry, which has coincided with a contraction in the government sector. He stressed that the benefits of private growth must reach a wider population, with profits being channelled back into productive use.
He called for more efficient utilization of resources, rationalisation of welfare schemes, and a balanced approach to taxation and investment to support higher, more inclusive economic growth. This comprehensive perspective underscores the need for the Union Budget 2026-27 to not only stimulate key sectors but also ensure equitable development and address structural imbalances for a resilient economy.
