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How is this year's budget?

Budget 2026: Finance Minister Nirmala Sitharaman has presented the country's general budget for the financial year 2026-27 in the Parliament. This time the government has set a strong example of fiscal discipline by maintaining the pace of development. The total size of the budget this time has been fixed at Rs 53.5 lakh crore, which is slightly more than Rs 50.65 lakh crore of the last financial year.

Government's 'masterstroke' on fiscal deficit

In the budget speech, the Finance Minister has given the biggest relief news regarding the economic health of the country. The promise that the government had made that it would bring the fiscal deficit under control in the year 2021-22, has been well fulfilled. The Finance Minister said that a target has been set to limit the fiscal deficit to 4.3 percent of GDP for the financial year 2026-27. This figure is less than the estimate of 4.4 percent for the current financial year.

Fiscal deficit is the difference between the government's earnings and expenditure. Reducing it simply means that the government is trying to spend within the limits of its income, which can reduce the pressure on inflation and interest rates in future. The government has made it clear that it will control its borrowing so that the debt burden on the country's economy does not increase.

How much is the government's debt?

In this budget, the government has proposed to reduce the Debt-to-GDP Ratio. A target has been set to bring it to 55.6 percent for the financial year 2027, which was 56.1 percent in the current financial year. This means that the government is reducing the ratio of its debt to the total economy.

To meet its expenses and deficit, the government will borrow Rs 11.7 lakh crore from the market through dated securities in the financial year 2027. However, the Finance Minister has assured in his speech that in the coming years, the fiscal policy will be made in such a way that the debt of the Central Government continues to reduce.

challenge to china's empire

In this budget, big steps have also been taken to give a new edge to 'Make in India'. According to rating agency CRISIL, China dominates the container manufacturing sector and its share in the global market is about 95 percent. To break this monopoly, the government has made a provision of special assistance of Rs 10,000 crore. This is a labour-intensive industry, which means it will create huge employment opportunities in the country and reduce our dependence on China for essential containers.

At the same time, while strengthening the federal structure, the Finance Minister, following the recommendation of the 16th Finance Commission, has maintained the decision of giving 41 percent share in tax to the states. It is estimated that in the next financial year the Central Government will release Rs 1.4 lakh crore as tax devolution to the states.