Economists have extended a warm welcome to the Union Budget 2026-27, describing it as a 'populist budget' that comprehensively addresses the aspirations of all segments of society. The budget, presented by Finance Minister Nirmala Sitharaman, marks her ninth consecutive budget and was delivered for the first time from Kartavya Path, symbolizing a new era of governance.
Scale of Growth and Fiscal Discipline
Economist Debojit Mahanta highlighted the dramatic expansion in government expenditure over the past decade. "The total expenditure for FY 2026–27 has been set at over Rs 53,47,315 crore," he said. "To appreciate the scale of growth, one only needs to look back at 2013–14 under the previous government, when total expenditure stood at Rs 16,60,000 crore. Over the past decade, under the NDA government, this figure has expanded dramatically to Rs 53,47,315 crore, reflecting a substantial commitment to national development."
Mahanta also pointed to the fiscal deficit as a key indicator of economic shift. He noted that during the term of the UPA government, the fiscal deficit averaged around 4.8%, whereas for FY 2026–27, it is targeted at 4.3%. This represents an improvement from 4.4% in the previous year's budget, showcasing enhanced fiscal discipline and management.
Boost to Capital Expenditure
Capital expenditure, widely regarded as the backbone of long-term economic growth, receives a significant boost in this budget. Mahanta emphasized, "Capital expenditure rises to Rs 20 lakh crore this year, compared to just Rs 2 lakh crore in the UPA's 2014–15 budget. This substantial increase underscores the government's focus on infrastructure and sustainable development, which are crucial for future prosperity."
Focus on Northeast Development
The budget includes several initiatives aimed at continuing the development of the northeast region. Mahanta detailed ongoing projects, stating, "Last year's announcement of increased urea supply, backed by a new 12.7-lakh-metric-ton annual capacity plant at Namrup, is progressing steadily. Additionally, 250 tourism destinations have been identified nationwide, with more expected to be added in the northeast, promoting regional tourism and economic growth."
He further elaborated on specific allocations for the northeast:
- The Ministry of Development of North Eastern Region (DoNER) has received a 47% increase over FY 2023–24, based on the FY 2024–25 baseline.
- The PM-DEVINE scheme has been allotted Rs 2,306 crore, which is Rs 910 crore more than the previous budget.
- The North East Special Infrastructure Development Scheme (NESIDS) gets Rs 2,500 crore, a Rs 20 crore increase from the previous year and Rs 1,500 crore more than in FY 2024–25.
Mahanta also mentioned that the budget addresses long-standing concerns in the region, such as floods and erosion. "Allocations are aimed at strengthening Brahmaputra flood control and mitigation measures, providing much-needed relief and resilience to the affected communities," he said.
Budget as a Vision Document
Mahanta explained that while many citizens view the budget as an annual statement of income and spending, for the BJP, it is presented as a vision document designed to fulfil election commitments and include every section of society. "From lower-income families to the middle and upper-middle classes, the budget aims to cater to all," he said. He cited the continued tax relief as a prime example of this approach: "The continued tax relief of no tax liability up to Rs 12 lakh serves as an example of this inclusive strategy, providing financial ease to a broad spectrum of taxpayers."
In summary, the Union Budget 2026-27 is being hailed by economists as a populist and visionary document that not only boosts economic growth through increased expenditure and capital investments but also prioritizes regional development, particularly in the northeast, while maintaining fiscal discipline and offering tax benefits to the common man.
