Presenting the Budget Estimates for 2026–27, the Finance Minister Nirmala Sitharaman highlighted the government’s continued focus on fiscal consolidation alongside growth.
Union Finance Minister Nirmala Sitharaman presented her ninth consecutive Union Budget 2026-27 in Parliament. Presenting the Budget Estimates for 2026–27, the Finance Minister highlighted the government’s continued focus on fiscal consolidation alongside growth.
The debt-to-GDP ratio is estimated at 55.6 per cent in BE 2026–27, improving from 56.1 per cent in the Revised Estimates (RE) for 2025–26.
The fiscal deficit for BE 2026–27 is projected at 4.3 per cent of GDP, lower than the 4.4 per cent of GDP estimated in BE 2025–26.
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On the receipts side, non-debt receipts are estimated at Rs 36.5 lakh crore in BE 2026–27, while the Centre’s net tax receipts are pegged at Rs 28.7 lakh crore.
The government has projected total expenditure at Rs 53.5 lakh crore for 2026–27, reflecting continued support for key programmes while adhering to the fiscal consolidation path.
Meanwhile, Nirmala Sitharaman announced an increase of about 9 per cent in capital expenditure for the coming financial year, raising the allocation to Rs 12.2 lakh crore in the Union Budget 2026-27.
Presenting the Budget in Parliament, the Finance Minister said the higher capital expenditure allocation is aimed at continuing the momentum in infrastructure development and supporting economic growth. The capital expenditure has been increased to Rs 11.21 lakh crore, up from the Rs 11.21 lakh crore allocated in the last Union Budget for FY25-26. For FY26, the government had set a capex allocation of Rs 11.21 lakh crore.
Nirmala Sitharaman is delivering her Budget speech after the Union Cabinet, headed by Prime Minister Narendra Modi, approved the Union Budget 2026.
The Budget 2026 arrives on the heels of sweeping structural changes, including the rollout of Labour Codes and ongoing GST reforms, even as India grapples with external headwinds such as steep US tariffs on Indian exports. In this challenging global climate, Sitharaman laid clear emphasis on bolstering manufacturing capabilities, accelerating infrastructure growth and safeguarding economic security.
