Budget 2026-27: Fiscal Prudence Meets Futuristic Vision

• The Budget 2026-27 aims for fiscal consolidation, targeting a 50% debt-to-GDP ratio by 2030 and a 3% fiscal deficit.
• Gross borrowing program is high at ₹17.2 lakh crore, with net borrowing at ₹11.7 lakh crore, indicating a 'new normal' for market financing due to maturing past debts.
• Miscellaneous receipts of ₹80,000 crore will focus on asset monetization of public sector units, reflecting a future government approach.
• Non-tax revenue from dividends, especially from RBI, is projected at ₹3.16 lakh crore for FY27, continuing its significant contribution.
• Interest payments are a major concern at ₹14.0 lakh crore, consuming 24% of the total budget and constraining other expenditures.

Why It Matters: Budget 2026-27 balances fiscal consolidation with strategic investments in emerging sectors like rare earths and data centers.