New Delhi, Jan 31 || As Finance Minister Nirmala Sitharaman gears up to table the Union Budget 2026-27 in Parliament on February 1, economists say the emphasis this year will be on defence, infrastructure, capex, power, and higher growth in affordable housing, apart from balancing social welfare with fiscal prudence.
Besides, policymakers will also balance growth priorities with fiscal discipline amid heightened global uncertainty.
The Budget is likely to strike a deft balance of sustaining growth momentum and maintaining fiscal consolidation.
It also needs to address near-term challenges emanating from unprecedented geopolitical flux, said economists.
The government has been steadfast on the path of fiscal consolidation, with the fiscal deficit easing from Covid induced high of 9.2 per cent to 4.4 per cent for FY26E (estimated).
According to experts, government will largely maintain its “fiscal rectitude and do not expect major deviation from this path”.