Budget 2026: India's Fiscal Tightrope Walk Amid Robust Growth, Spending Cuts Eyed

• Union Budget 2026 to balance growth support with fiscal discipline, says IDFC Bank's Gaura Sen Gupta.
• Infrastructure spending (capex) growth may moderate due to execution challenges and need for new sectors.
• Upcoming Pay Commission could increase government salaries/pensions, rebalancing spending priorities.
• Fiscal deficit reduction pace to slow from FY27; focus shifts to reducing overall government debt.
• Stronger tax collections and a substantial RBI dividend (₹2.2 trillion) expected to support finances.

Why It Matters: India's Budget 2026 aims for fiscal prudence and moderated spending growth despite robust GDP, facing global trade risks.