Union Budget 2026-27: Prioritize Execution Over Grand Ambition for Growth

• The upcoming Union Budget 2026-27 should focus on smart, targeted fixes to remove frictions hindering capital flow, stifling markets, and bogging down infrastructure, rather than just large spending figures.
• Key changes proposed for capital markets include lowering Securities Transaction Tax (STT) on cash equity trades, taxing only the profit portion of company buybacks, and equalizing dividend taxes for domestic and non-resident investors.
• Infrastructure spending, particularly on railways and roads, needs consistent increases, with a capital expenditure target around ₹12 lakh crore, supported by improved asset monetization through the National Monetization Pipeline 2.0.
• Addressing the Inverted Duty Structure for manufacturers and infrastructure players by allowing refunds on input taxes would free up crucial working capital.
• Specific policy clarity for EVs, including domestic capacity building for rare earth magnets, and easing asset recovery rules for NBFCs by lowering the SARFAESI threshold, are vital for targeted sector growth.

Why It Matters: The Union Budget must prioritize consistent execution and practical fixes over ambitious announcements for sustainable economic growth.