Echoing a new era of fiscal maturity, the 2026-27 budget ditches ‘quick relief’ for profound, long-haul economic blueprints. Crisil Intelligence’s insightful Monday release spotlights capex escalation and spending optimizations driving this change.
The narrative has flipped from post-COVID infra splurges and recovery aids to enduring reforms enhancing business ease and broad-based growth. With macroeconomic stability, short-term props are passé; investments now target manufacturing and services as growth engines.
Fiscal discipline unlocks this vision—deficit trimming and debt trajectory management create headroom. FY25 real GDP growth hits 7.4% (vs 6.5%), propelled by consumption-friendly policies and tax easings that amplified spending power.
Welfare for the needy shifts to employment guarantees and productive assets, balancing subsidy cuts. Spending sharpness improves: 3.1% GDP Centre capex, 4.4% total with states. Capex prioritization from revenue pools continues, despite interest payment pressures.
Capex swells 9% to landmark Rs 12.2 lakh crore (4.4% GDP), fueling development. FY27 deficit at 4.3% GDP, with 10% nominal growth outlook, positions India for accelerated, inclusive progress.