Budget 2026-27 Analysis

BUDGET 2026-27 ANALYSIS

# Fiscal deficit is decreasing from 4.4% of GDP (2025-26) to 4.3% (2026-27) - a decrease of 0.1% points. This is good.

# Nominal GDP is estimated to grow/increase in 2026-27 by 10%.

The 4 Budget components are changing from 2025-26 to 2026-27 like this:

1. Revenue Receipts (good income - ie, taxes)

This is increasing by 7.2% - which is less than the GDP growth rate (10%). This is bad.

2. Capital Receipts (bad income - ie, loans)

This is increasing by 8.8% - which is less than the GDP growth rate. This is good.

3. Revenue Expenditure (bad spending - salaries, schemes, subsidies)

This is increasing by 2% - which is less than the GDP growth rate. This is good.

4. Capital Expenditure (good spending - ie, infrastructure)

This is increasing by 22.1% - which is more than the GDP growth rate. This is good.

The low increase in Revenue Receipts is due to the recent GST tax cuts. But overall this is both a pro-growth and fiscally disciplined Budget . . .