Future Focus

Growth is being pursued through job generation and capacity creation, not short-term support

- ANAND SHAH

Budget 2026-27 signals a clear choice by the government. Growth is being pursued through employment generation and capacity creation, not through short-term support. The framework rests on expanding productive assets, improving participation in formal economic activity and supporting sectors that can generate jobs at scale. Manufacturing, services exports, logistics and financial intermediation remain central to this approach. The intent is to let incomes and profits drive consumption rather than stimulating it solely through fiscal stimulus. Public spending continues to play a guiding role, but within a controlled fiscal structure. Nominal GDP for FY27 has been projected at ₹393 lakh crore, reflecting about 10 percent growth. Overall expenditure is budgeted at ₹53.47 lakh crore, rising at a slower pace than in previous years. Capital expenditure is set at ₹12.22 lakh crore, while effective capital outlay, including grants for asset creation, rises more sharply to ₹17.15 lakh crore. The fiscal deficit target has been lowered to 4.3 percent of GDP, keeping the government on track toward a gradual reduction in the debt ratio over the decade.