Budget 2026: Analysts Weigh In on FM's Fiscal Plans and Growth Projections

• Brokerage commentary on Union Budget 2026 highlights preserved fiscal credibility despite a slower pace of consolidation.
• Morgan Stanley notes a balance between debt reduction, growth support, and a shallow fiscal consolidation, signaling a shift towards semiconductors as a growth driver.
• Deutsche Bank and HDFC Bank describe the fiscal stance as conservative, focusing on foundations rather than immediate impact.
• Analysts view the government's 10% nominal GDP growth assumption as conservative, expecting better actual outcomes and improved tax trends.
• Mixed reactions to government borrowing numbers, with higher gross borrowing potentially impacting bond market sentiment and 10-year yield.

Why It Matters: Analysts broadly agree on Budget 2026's fiscal credibility, conservative growth, and slower consolidation pace.