Union Budget 2026 May Break Tradition, Part B to Lay Out Long-Term Economic Vision

Mangalore Today News Network

New Delhi, Feb 1, 2026: The Union Budget to be presented by Finance Minister Nirmala Sitharaman is set to break a 75-year-old convention, with Part B of the Budget speech expected to go beyond routine tax proposals and outline a comprehensive vision for India’s economic future, says sources.

Traditionally, the key policy thrust of the Budget has been contained in Part A, while Part B has largely been limited to tax and related policy announcements. However, this year, Part B is expected to spell out both short-term priorities and long-term goals as India moves deeper into the second quarter of the 21st century, highlighting the country’s domestic strengths and global aspirations.

Economists in India and overseas are closely tracking the Budget, expecting a roadmap that goes well beyond incremental tax changes and offers clarity on the government’s broader economic strategy.

This will be Sitharaman’s ninth consecutive Union Budget. In her maiden Budget in 2019, she had symbolically replaced the traditional leather briefcase with a red cloth-wrapped ‘bahi-khata’. Like the previous four years, this year’s Budget will also be presented in a paperless format.

With the government having achieved its fiscal consolidation target of bringing the deficit below 4.5 per cent of GDP in fiscal 2026, market participants will closely watch for signals on the debt-to-GDP reduction path in the Budget for fiscal 2027. Attention will also be on whether the government announces a specific fiscal deficit target for the next financial year.

Capital expenditure is expected to remain a key focus area. The government has budgeted capital spending of Rs 11.2 lakh crore for the current fiscal and is likely to raise the capex target by 10 to 15 per cent in the upcoming Budget, amid continued caution among private sector investors.

Nominal GDP growth projections for fiscal 2027 will also be keenly scrutinised, as they will offer insights into the inflation outlook. Estimates suggest the government may peg nominal GDP growth between 10.5 and 11 per cent for the next fiscal year.

The Budget is also expected to place emphasis on allocations for major schemes such as G RAM G, along with increased spending on critical sectors including health and education.