FY27 Budget: Economists Predict Large Spending, Stabilizing Capex Push

• Economists expect the FY27 Union Budget to remain expansive, with a median estimate of Rs 53 lakh crore for total size.
• Capital expenditure (capex) for FY27 is projected at a median of Rs 12 lakh crore, stabilizing at around 3.05% of GDP.
• The pace of capex expansion is expected to moderate to about 9% in FY27, down from an estimated 17% in the current fiscal.
• Experts suggest a shift in capex focus towards digital infrastructure and defence capital assets.
• Gross market borrowing is anticipated to rise to Rs 16.5 lakh crore in FY27, while the fiscal deficit is expected to ease to 4.2% of GDP.

Why It Matters: The FY27 Budget is set for continued high spending with stabilizing capex and a focus on digital and defence assets.