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Finance minister Nirmala Sitharaman’s Budget speech for 2026–27 was expansive in length and dense with sector-wise announcements, but it stopped short of articulating a coherent broader vision for the economy. Spread across dozens of schemes, initiatives and challenge-mode programmes, the speech reflected administrative hyperactivity rather than strategic clarity.

The Centre’s emphasis remains firmly on capital expenditure, with public capex proposed at Rs 12.2 lakh crore for 2026–27, up from Rs 11.2 lakh crore in the previous year. Manufacturing, infrastructure and services dominate the narrative.

New initiatives ranged from a Rs 10,000 crore Biopharma SHAKTI programme to expanded semiconductor ambitions under India Semiconductor Mission 2.0, a Rs 40,000 crore electronics components scheme, and multiple sector-specific manufacturing incentives—from rare earth corridors to container manufacturing.

Yet, despite the abundance of announcements, the speech offered little sense of priorities or trade-offs. Defence, at a time of heightened geopolitical uncertainty and ongoing border tensions, found no explicit mention in the minister’s address. Equally striking was the absence of any reference to MNREGA—recently rechristened as the Vishwakarma Gramin Rozgar Guarantee (VG GRAM G)—even as the Union government spends heavily on advertising after renaming the programme. The silence was conspicuous, especially against the backdrop of persistent rural distress and stagnant real wages.

Agriculture featured largely through the lens of diversification and “high-value crops” such as coconut, cocoa, sandalwood and nuts. While these interventions may benefit select regions and commercial growers, there was no direct articulation of support for foodgrain farmers who continue to form the backbone of India’s food security system. Issues of procurement, minimum support prices, rising input costs or farmgate price volatility found no place in the speech.

For salaried taxpayers, the budget offered little immediate relief. Beyond procedural simplification through the implementation of the new Income Tax Act, 2025 from 1 April 2026, there were no changes in tax slabs or standard deductions. The emphasis was squarely on “ease of living” through compliance rationalisation rather than income support.

Fiscal consolidation remained a key talking point, with the fiscal deficit pegged at 4.3 per cent of GDP and the debt-to-GDP ratio projected to decline marginally to 55.6 per cent. Non-debt receipts are estimated at Rs 36.5 lakh crore, while total expenditure is projected at Rs 53.5 lakh crore.