CEA, Expenditure Secretary Back Budget Math, Stress Capex Push Amid Global Uncertainties

• Chief Economic Adviser Anantha Nageswaran affirmed the Union Budget 2026's conservative growth and revenue assumptions, stating the government is comfortable with the projections.
• Nageswaran downplayed concerns about the upcoming CPI base year revision, expecting minimal impact (under 20 basis points) on inflation figures.
• He highlighted the challenge of attracting global capital due to current uncertainties, noting that resolving tariff issues with the US could help.
• Expenditure Secretary V. Vualnam reiterated capital spending as the government's top priority, with Railways, highways, and metros absorbing higher capex.
• Vualnam stated that capex estimates are realistic and public investment has not peaked, hinting at potential private partnerships for railways and improved fertilizer subsidy administration.

Why It Matters: Government officials confirm Budget 2026's conservative estimates and strong focus on capital expenditure despite global headwinds.