India Pursues Fiscal Consolidation And Growth Investment

Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27 on February 1, 2026, targeting a 4.3 percent fiscal deficit for FY27 and capital expenditure of ₹12.5 lakh crore. The budget emphasizes fiscal consolidation, caps off-budget borrowings, and allocates ₹10,000 crore to the National AI Mission plus ₹5,000 crore for frontier-technology innovation, preserving macro stability while supporting investment.