Budget 2026. (AI generated Photo)
Finance Minister Nirmala Sitharaman will present the budget today. This will be the ninth budget presented by him. It includes 2 interim budgets. This time everyone’s eyes are on customs reforms. At the same time, PM Modi’s recent speech indicates that the budget will be in the direction of reform. Talking about expectations, it is believed that gold and silver may become cheaper due to the budget. In the new income tax regime, standard deduction can be increased to Rs 1 lakh. Kisan Samman Nidhi can be increased. Amrit Bharat and Vande Bharat trains may be announced. Along with these expectations, let us know those special things of the budget on which everyone’s eyes will be.
First of all let’s talk about fiscal deficit. The difference between what the government spends and what it earns is fiscal deficit. It is estimated to be 4.4 percent of GDP in the current financial year. After achieving the target of less than 4.5 percent in the budget, now the markets are keeping an eye on how the government will reduce the debt to GDP ratio. It is expected that the government may fix the fiscal deficit at 4 percent for the financial year 2026-27.
Also read- Budget 2026: Gold and silver at record high, relief in taxes and rules expected from the budget
- Capital Expenditure: In the current financial year, the government has made a provision of Rs 11.2 lakh crore for this. Considering the slowdown in private investment, the government may maintain spending on infrastructure in the next budget. It can increase by 10 to 15 percent. With this, this amount can exceed Rs 12 lakh crore.
- Loan Details: In the budget of 2024-25, the Finance Minister had said that from the financial year 2026-27, the objective of the government’s policy will be to reduce the debt to GDP ratio. The market is keeping an eye on what deadline the government sets to bring the debt-GDP ratio to 60 percent. In the year 2024, this ratio was 85 percent, in which the central government’s share was 57 percent.
- Borrowing: In the financial year 2025-26, the government has estimated gross borrowing of Rs 14.80 lakh crore. The government takes loans from the market to meet its deficit. Borrowing data tells us about the economic condition of the country and the income of the government.
Also read- Budget 2026: Expected clarity from the budget on gift tax, medical expenses and family settlement.
- Tax Revenue: In the budget of 2025-26, the government has set the target of total tax revenue at Rs 42.70 lakh crore, which is 11 percent more than last year. Of this, Rs 25.20 lakh crore is expected to come from direct taxes and Rs 17.5 lakh crore from indirect taxes.
- GST: The revenue from GST in the financial year 2025-26 is estimated to be 11 percent at Rs 11.78 lakh crore. Revenue is expected to increase after the cut in GST rates from September 2025. Therefore, special attention will be paid to the estimates for 2026-27.
- GDP Growth: The country’s GDP growth at current prices in 2025-26 is estimated to be 10.1 percent, while the real GDP growth is considered to be 7.4 percent. Due to low inflation, the GDP growth estimate at current prices has been reduced to 8 percent. This growth is expected to be between 10.5 to 11 percent in the financial year 2026-27.
Also read- Budget 2026: Modi government on Reforms Express, focus from middle class to defense
The recent speech given by Prime Minister Narendra Modi indicates that the reform express in the budget will continue i.e. the budget will be in the direction of reform. In such a situation, this time it is expected to increase government expenditure in the healthcare sector, promote indigenous production in defense and give new impetus to infrastructure projects. The real estate sector is also hopeful of announcements related to cheaper interest rates, tax relief and affordable housing, which can boost demand and create new employment opportunities.