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Budget 2026 outlook: ICRA flags focus on debt consolidation; capex push to continue

Budget 2026 outlook: ICRA flags focus on debt consolidation; capex push to continue

Ahead of the 2026-27 Union Budget, ICRA anticipates a dual focus on medium-term debt reduction and robust capital expenditure. The budget, aligning with the 16th Finance Commission, aims for a fiscal deficit of 4.3% of GDP. Significant infrastructure spending is expected, with capital expenditure projected to rise by 14% to Rs 13.1 trillion, before potential fiscal pressures emerge.
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