FY26 Union Budget focuses on bolstering near as well as medium-term growth levers
Download ReportQuantEco Research || FY26 Union Budget: Consumption boost to growth
The Union Budget FY26 balances current fiscal, economic and political realities. Growth axis tilts towards consumption with middle class likely to benefit from income tax reduction. The budget defines the roadmap to bringing debt to GDP to ~50% by FY31. Highlights of the budget - Fiscal consolidation, Credible arithmetic, Capex push, Thrust on labour intensive sectors & MSMEs, Correction of inverted duties.
The Hits of Union Budget FY26: Fiscal consolidation on track Growth oriented budget; Credible fiscal arithmetic; Retains capex thrust; Maintains gross borrowing and Focus on labour-intensive sector.
The Misses: Tax buoyancy (including revenue foregone) on the higher side; Subsidy bill could face upside risks, esp. from fertilizer; Disinvestment target lofty and Silent on ELI and PLI schemes