Budget 2026: Sitharaman to Make History, Fiscal Deficit at 4.3% Amid Global Challenges

• Nirmala Sitharaman will present her 9th consecutive budget, making her the first Finance Minister to do so under a single Prime Minister, nearing Morarji Desai's record.
• The middle class and salaried individuals anticipate tax relief, including making income up to ₹12 lakh tax-free under the new tax regime and increased deduction limits for home loans and health insurance.
• Investors are seeking relief on Long Term Capital Gains (LTCG) in the upcoming budget.
• ICRA estimates a fiscal deficit target of 4.3% of GDP for FY2026-27, a slight reduction from the current 4.4%, indicating a commitment to debt consolidation.
• The budget addresses global uncertainties, US tariffs on Indian exports, and a depreciating Rupee, with industry expecting support for export diversification.

Why It Matters: Budget 2026 aims for fiscal consolidation and economic growth amidst global challenges, with potential tax relief.