Budget 2026: Sustainable Consolidation, Infra, Taxes, and AI Push Eyed

• Finance Minister Nirmala Sitharaman to present her ninth consecutive Union Budget, focusing on sustainable consolidation amidst resilient domestic growth.
• Anticipated shift towards Part B of the budget speech, emphasizing direct and indirect tax proposals for citizens and corporations.
• Fiscal deficit target expected at 4.3% of GDP, signaling commitment to reducing debt-to-GDP ratio by 2031.
• Double-digit increase in capital expenditure (Capex) projected, with focus on green energy, deep-tech/AI, and digital agriculture.
• Middle-class expectations include increased standard deduction (potentially to Rs 1 lakh) and rationalization of tax slabs to boost disposable income.

Why It Matters: Budget 2026 aims for fiscal discipline, significant infrastructure investment, and tax reforms while balancing populist expectations.