Budget 2026: Tax Relief, Inflation Control, and Capex Boost on Nation's Radar

• Expectations are high for personal income tax relief, potentially through new tax slabs or joint taxation for married couples, aiming to boost middle-class consumption.
• Measures to strengthen the supply chain and stabilize food inflation, particularly for essential vegetables, are anticipated to provide relief to households.
• The government is likely to maintain the gross fiscal deficit at 4.4% of GDP in FY27, signaling economic discipline and focusing on reducing the debt-to-GDP ratio to 50% by FY31.
• Capital expenditure is projected to increase by about 13% year-on-year in FY27, providing strong support for infrastructure, employment, and economic activities.
• Special attention is expected for the defense sector with increased 'Make in India' emphasis, and export sectors affected by US tariffs hope for relief through incentives.

Why It Matters: Budget 2026 is poised to address tax relief, inflation, fiscal discipline, and capital expenditure to drive economic growth.