Budget 2026: Defence Boost, Tax Tweaks, FDI Easing Expected

• India's Union Budget 2026 is anticipated to include higher defence outlays and simplified foreign investment norms.
• Finance Minister Nirmala Sitharaman will present the budget, with global investors monitoring debt management and borrowing plans.
• Economists expect a fiscal deficit target of 4.2% of GDP for 2026–27, with gross market borrowing projected to rise to Rs 16–16.8 trillion.
• The Defence Ministry seeks a 20% increase in military spending and relaxed FDI rules for defence manufacturing.
• Tax experts recommend scrapping the securities transaction tax and revising income tax rules for global firms.

Why It Matters: Budget 2026 focuses on defence, fiscal consolidation, FDI easing, and potential tax reforms.