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Part A: Yuva Shakti and Three Kartavya

• Part A opens with the Government expressing gratitude to citizens for their support as India advances towards becoming one of the world’s largest economies, emphasising a collective national journey and public partnership in growth.
• The Budget states its objective of converting aspiration into achievement and potential into performance, while ensuring that the dividends of growth reach farmers, Scheduled Castes, Scheduled Tribes, nomadic communities, youth, the poor, and women.
• The Budget is positioned as a Yuva Shakti-driven Budget, drawing from innovative ideas shared during the Viksit Bharat Young Leaders Dialogue 2026, which have informed several proposals.
• The Government reiterates its Sankalp to focus on the poor, underprivileged, and disadvantaged, and frames the first Budget prepared in Kartavya Bhawan around three guiding kartavya.
  • First kartavya: The first kartavya focuses on accelerating and sustaining economic growth through higher productivity, improved competitiveness, and resilience to volatile global dynamics.
  • Second kartavya: The second kartavya aims to fulfil the aspirations of citizens and build their capacity, enabling them to become active partners in India’s path to prosperity.
  • Third kartavya: The third kartavya, aligned with Sabka Sath, Sabka Vikas, seeks to ensure equitable access to resources, amenities, and opportunities across families, communities, regions, and sectors.
• The Budget notes that delivery of these kartavya requires a supportive ecosystem, including continuous and forward-looking structural reforms, a robust financial sector for efficient capital mobilisation and risk management, and the use of advanced technologies, including Artificial Intelligence (AI), to strengthen governance.
• The Government has undertaken comprehensive economic reforms to support employment generation, productivity enhancement and faster economic growth, following the announcement made by the Prime Minister on Independence Day 2025.
• Over 350 reforms have been implemented, including Goods and Services Tax simplification, notification of Labour Codes, and rationalisation of mandatory Quality Control Orders, alongside the constitution of High-Level Committees.
• In parallel, the Central Government, in coordination with State Governments, is advancing deregulation and reduction of compliance requirements to improve the ease of doing business. The Reform Express is progressing steadily and will continue at pace to support the Government’s Kartavya and long-term growth objectives.

First Kartavya: To Accelerate and Sustain Economic Growth

• Under the first Kartavya, the Government proposed interventions to accelerate and sustain economic growth.
• The strategy focuses on six key areas:
  • Scaling up manufacturing in seven strategic and frontier sectors
  • Rejuvenating legacy industrial sectors
  • Creating “Champion MSMEs”
  • Delivering a powerful push to infrastructure
  • Ensuring long-term energy security and stability
  • Developing City Economic Regions

Scaling up Manufacturing in Seven Strategic and Frontier Sectors

• To strengthen domestic manufacturing and build global competitiveness in high-impact areas, the Government proposed a series of targeted interventions across strategic and frontier sectors, covering biopharma, semiconductors, electronics, critical minerals, chemicals, capital goods, textiles and sports goods.
• Biopharma SHAKTI (Strategy for Healthcare Advancement through Knowledge, Technology and Innovation): It was proposed in view of the shifting disease burden towards non-communicable diseases such as diabetes, cancer, and autoimmune disorders, where biologic medicines play a critical role. With an outlay of Rs. 10,000 crore (US$ 1.09 billion) over five years, the initiative aims to develop India as a global biopharma manufacturing hub and build a complete domestic ecosystem for biologics and biosimilars, including:
  • Establishment of a biopharma-focused network with three new National Institutes of Pharmaceutical Education and Research and upgradation of seven existing institutes.
  • Creation of over 1,000 accredited clinical trial sites across India.
  • Strengthening of the Central Drugs Standard Control Organisation through a dedicated scientific review cadre and specialists to meet global regulatory standards and approval timelines.
• India Semiconductor Mission (ISM) 1.0: Building on the expansion achieved under India Semiconductor Mission (ISM) 1.0, the Government proposed launching ISM 2.0 to further strengthen the semiconductor ecosystem. The focus will be on production of equipment and materials, development of full-stack Indian intellectual property, and fortification of supply chains, supported by industry-led research and training centres to build advanced technology capabilities and a skilled workforce.
• Electronics Components Manufacturing Scheme: The Electronics Components Manufacturing Scheme, launched in April 2025 with an outlay of Rs. 22,919 crore (US$ 2.50 billion), has already attracted investment commitments at double the target level. To capitalise on this momentum, the Government proposed to increase the outlay to Rs. 40,000 crore (US$ 4.36 billion).
• Scheme for Rare Earth Permanent Magnets: Following the launch of the Scheme for Rare Earth Permanent Magnets in November 2025, the Government proposed supporting mineral-rich States Odisha, Kerala, Andhra Pradesh and Tamil Nadu to establish dedicated Rare Earth Corridors to promote mining, processing, research and manufacturing.
• To enhance domestic chemical production and reduce import dependence, a scheme was proposed to support States in establishing three dedicated Chemical Parks through a challenge-based, cluster-oriented, plug-and-play model.
• Recognising that capital goods capability is a key determinant of productivity and quality across sectors, the Government proposed multiple interventions, including:
  • Establishment of Hi-Tech Tool Rooms by Central Public Sector Enterprises at two locations as digitally enabled automated service bureaus to locally design, test and manufacture high-precision components at scale and at lower cost.
  • Introduction of a Scheme for Enhancement of Construction and Infrastructure Equipment (CIE) to strengthen domestic manufacturing of high-value and technologically advanced equipment, ranging from lifts and fire-fighting systems to tunnel-boring machines for metro projects and high-altitude roads.
  • Launch of a Container Manufacturing Scheme to create a globally competitive container manufacturing ecosystem, with a budgetary allocation of Rs. 10,000 crore (US$ 1.09 billion), over five years.
• For the labour-intensive textile sector, the Government proposed an Integrated Programme with five sub-parts, covering fibre self-reliance, cluster modernisation, artisan support, sustainability, and skilling:
  • National Fibre Scheme for self-reliance in natural fibres such as silk, wool and jute, as well as man-made and new-age fibres.
  • Textile Expansion and Employment Scheme to modernise traditional clusters through capital support for machinery, technology upgradation, and common testing and certification centres.
  • National Handloom and Handicraft Programme to integrate and strengthen existing schemes and provide targeted support to weavers and artisans.
  • Tex-Eco Initiative to promote globally competitive and sustainable textiles and apparel.
  • Scheme for Capacity Building in the Textile Sector (Samarth) 2.0 to modernise and upgrade the textile skilling ecosystem through collaboration with industry and academic institutions.
• In addition, the Government proposed setting up Mega Textile Parks through a challenge mode, with scope for value addition, including in technical textiles.
• The Mahatma Gandhi Gram Swaraj initiative was proposed to strengthen khadi, handloom and handicrafts by streamlining training, skilling, quality of processes and production, and improving global market linkages and branding, benefiting weavers, village industries, the One District–One Product initiative and rural youth.
• Recognising India’s potential in sports manufacturing, a dedicated initiative for sports goods was proposed to promote manufacturing, research and innovation in equipment design and material sciences, with the objective of developing India as a hub for high-quality, affordable sports goods.

Rejuvenation of Legacy Industrial Clusters

• A Scheme to revive 200 legacy industrial clusters was proposed, with the objective of improving cost competitiveness and operational efficiency through targeted infrastructure and technology upgradation.

Creating “Champion MSMEs” and Supporting Micro Enterprises

• Recognising MSMEs as a vital engine of economic growth, the Government proposed a three-pronged approach to support their transition into “Champion” enterprises, focusing on equity support, liquidity support and professional capacity building.
• Equity Support: A dedicated SME Growth Fund with an allocation of Rs. 10,000 crore (US$ 1.09 billion) was proposed to create future “Champion” MSMEs by incentivising enterprises based on select criteria. The Self-Reliant India Fund, established in 2021, will be topped up by Rs. 2,000 crore (US$ 218 million), to continue providing risk capital support to micro enterprises and maintain their access to growth financing.
• Liquidity Support: With more than Rs. 7 lakh crore (US$ 76.75 billion)already made available to MSMEs through the Trade Receivables Discounting System (TReDS), the Government proposed measures to further leverage its potential, including:
  • Mandating TReDS as the transaction settlement platform for all purchases from MSMEs by Central Public Sector Enterprises, serving as a benchmark for other corporates.
  • Introducing credit guarantee support through CGTMSE for invoice discounting on the TReDS platform.
  • Linking GeM with TReDS to share information on government purchases from MSMEs with financiers, enabling cheaper and faster access to credit.
  • Introducing TReDS receivables as asset-backed securities to develop a secondary market and enhance liquidity and settlement of transactions.
• Professional Support
  • The Government will facilitate professional institutions such as Institute of Chartered Accountants of India (ICAI), Institute of Company Secretaries of India (ICSI) and Institute of Cost Accountants of India (ICMAI) to design short-term, modular courses and practical tools for developing a cadre of ‘Corporate Mitras’, particularly in Tier II and Tier III towns.
  • These accredited para-professionals will assist MSMEs in meeting compliance requirements at affordable costs.

Infrastructure Push

• Over the past decade, the Government has undertaken several initiatives for large-scale infrastructure development, supported by financing instruments such as Infrastructure Investment Trusts (InVITs) and Real Estate Investment Trusts (REITs), and institutions including NIIF and NABFID.
• The focus on infrastructure development in cities with populations exceeding 5 lakh, particularly Tier II and Tier III cities, will continue as these cities emerge as important growth centres.
• Public capital expenditure has increased from Rs. 2 lakh crore (US$ 21.81 billion) in FY15 to Rs. 11.2 lakh crore (US$ 122.16 billion) in BE 2025-26, and is proposed to be further increased to Rs. 12.2 lakh crore (US$ 133.07 billion) in FY27 to sustain investment momentum.
• To strengthen confidence among private developers during the construction phase, the Government proposed setting up an Infrastructure Risk Guarantee Fund to provide prudently calibrated partial credit guarantees to lenders.
• To accelerate asset monetisation, the Government proposed recycling significant real estate assets of Central Public Sector Enterprises through the establishment of dedicated REITs.
• To promote environmentally sustainable cargo movement, the Government proposed:
  • Establishment of new Dedicated Freight Corridors connecting Dankuni in the East to Surat in the West.
  • Operationalisation of 20 new National Waterways over the next five years, beginning with National Waterway-5 (NW-5) in Odisha, connecting mineral-rich and industrial areas to ports at Paradeep and Dhamra, alongside setting up Regional Centres of Excellence for manpower development and a ship repair ecosystem at Varanasi and Patna.
  • Launch of a Coastal Cargo Promotion Scheme to encourage modal shift from rail and road, with the objective of increasing the share of inland waterways and coastal shipping from 6% to 12% by 2047.
• To enhance last-mile and remote connectivity and promote tourism, incentives were proposed to indigenise manufacturing of seaplanes, along with the introduction of a Seaplane Viability Gap Funding Scheme to support operations.

Carbon Capture Utilisation and Storage (CCUS)

• In alignment with the roadmap launched in December 2025, the Government proposed scaling up Carbon Capture Utilisation and Storage (CCUS) technologies to achieve higher readiness levels across five industrial sectors power, steel, cement, refineries and chemicals. An outlay of Rs. 20,000 crore (US$ 2.18 billion) over five years was proposed to support deployment of CCUS technologies at scale.

City Economic Regions

• Cities were highlighted as engines of growth, innovation and opportunity, with renewed focus on Tier II and Tier III cities, including temple-towns, which require modern infrastructure and basic amenities.
• The Budget proposed mapping City Economic Regions (CERs) based on their specific growth drivers to unlock agglomeration benefits and enhance urban productivity.
• An allocation of Rs. 5,000 crore (US$ 0.55 billion) per CER over five years was proposed to implement CER plans through a challenge-based, reform-cum-results financing mechanism.
• To promote environmentally sustainable passenger transport, the Government proposed development of seven High-Speed Rail corridors as growth connectors:
  • Mumbai–Pune
  • Pune–Hyderabad
  • Hyderabad–Bengaluru
  • Hyderabad–Chennai
  • Chennai–Bengaluru
  • Delhi–Varanasi
  • Varanasi–Siliguri
• Financial Sector
  • The Indian banking sector was noted to be characterised by strong balance sheets, historic highs in profitability, improved asset quality, and coverage exceeding 98% of villages, providing a strong foundation for the next phase of reform-led growth.
  • To guide this transition, the Government proposed setting up a High Level Committee on Banking for Viksit Bharat to comprehensively review the sector and align it with India’s future growth needs, while safeguarding financial stability, inclusion and consumer protection.
  • The vision for Non-Banking Financial Companies (NBFCs) under Viksit Bharat has been outlined with clear targets for credit disbursement and technology adoption. As a first step towards scale and efficiency in Public Sector NBFCs, it was proposed to restructure the Power Finance Corporation and Rural Electrification Corporation.
  • A comprehensive review of the Foreign Exchange Management (Non-debt Instruments) Rules was proposed to create a more contemporary and user-friendly framework for foreign investment, aligned with evolving economic priorities.
• Corporate Bond Market: To deepen the corporate bond market, the Government proposed introducing a market-making framework with suitable access to funds and derivatives on corporate bond indices. Introduction of total return swaps on corporate bonds was also proposed to enhance liquidity and risk management.
• Municipal Bond: To encourage larger bond issuances by cities, an incentive of Rs. 100 crore (US$ 10.91 million) was proposed for a single municipal bond issuance exceeding Rs. 1,000 crore (US$ 109.07 million). The existing Atal Mission for Rejuvenation and Urban Transformation (AMRUT) -linked scheme, which incentivises municipal bond issuances up to Rs. 200 crore (US$ 21.81 million), will continue to support small and medium towns.
• Ease of Doing Business: Persons Resident Outside India (PROI) will be permitted to invest in equity instruments of listed Indian companies through the Portfolio Investment Scheme. The individual investment limit for a PROI will be increased from 5% to 10%, with the overall limit for all PROIs raised from 10% to 24%.
• Emerging Technologies, including AI: The Government reiterated that the 21st century is technology-driven, with adoption of technology aimed at benefiting farmers, women in Science, Technology, Engineering and Mathematics (STEM), youth seeking upskilling, and Divyangjan. Ongoing support for emerging technologies is being provided through initiatives such as the AI Mission, National Quantum Mission, Anusandhan National Research Fund, and the Research, Development and Innovation Fund.

Second Kartavya: Fulfilling Aspirations and Building Capacity

The second Kartavya focuses on fulfilling aspirations and building capacity, noting that close to 25 crore individuals have moved out of multidimensional poverty over the past decade through sustained, reform-oriented efforts. To advance this progress and meet the aspirations of a youthful India, the Government announced a renewed emphasis on the Services Sector as a key pathway for growth, employment and opportunity creation.

• High-Powered ‘Education to Employment and Enterprise’ Standing Committee
  • A High-Powered ‘Education to Employment and Enterprise’ Standing Committee was proposed to recommend measures positioning the Services Sector as a core driver of Viksit Bharat.
  • The Committee will aim to support India’s emergence as a global leader in services, targeting a 10% global share by 2047.
• It will prioritise areas with high potential for growth, employment and exports, and assess the impact of emerging technologies, including AI, on jobs and skill requirements.

Creation of Professionals for Viksit Bharat

• Health: Existing institutions for Allied Health Professionals (AHPs) will be upgraded, and new AHP institutions will be established in both the private and Government sectors. The initiative will cover 10 selected disciplines, including optometry, radiology, anesthesia, OT Technology, applied psychology and behavioural health, and aims to add 100,000 AHPs over five years. A strong care ecosystem covering geriatric and allied care services will be developed through NSQF-aligned programmes to train multiskilled caregivers combining core care and allied skills such as wellness, yoga and operation of medical and assistive devices. In the coming year, 1.5 lakh caregivers will be trained.
• Hubs for Medical Value Tourism: To promote India as a hub for medical tourism services, a scheme was proposed to support States in establishing five Regional Medical Hubs in partnership with the private sector. These hubs will function as integrated healthcare complexes combining medical, educational and research facilities, and will include AYUSH Centres, Medical Value Tourism Facilitation Centres, and infrastructure for diagnostics, post-care and rehabilitation. The hubs are expected to generate diverse employment opportunities for doctors, Allied Health Professionals (AHPs) and other health professionals.
• AYUSH: Recognising the growing global acceptance of yoga and Ayurveda, the Government proposed additional measures to support the AYUSH ecosystem and exports.These include:
  • Setting up three new All India Institutes of Ayurveda.
  • Upgrading AYUSH pharmacies and drug testing laboratories to strengthen certification standards and skilled manpower availability.
  • Upgrading the World Health Organization (WHO) Global Traditional Medicine Centre at Jamnagar to strengthen evidence-based research, training and awareness.
• Animal Husbandry: Livestock was highlighted as contributing close to 16% of farm income, including for poor and marginal households. To increase the availability of veterinary professionals by over 20,000, a loan-linked capital subsidy scheme was proposed to support establishment of veterinary and para-vet colleges, hospitals, diagnostic laboratories and breeding facilities in the private sector, alongside collaboration with foreign institutions.
• Orange Economy (AVGC): India’s Animation, Visual Effects, Gaming and Comics (AVGC) sector, projected to require 2 million professionals by 2030, will be supported through the Indian Institute of Creative Technologies, Mumbai. AVGC Content Creator Labs will be set up in 15,000 secondary schools and 500 colleges.
• Design: To address the shortage of designers amid rapid industry expansion, a new National Institute of Design will be established through a challenge route to strengthen design education in eastern India.
• Education: States will be supported, through a challenge route, in creating five University Townships near major industrial and logistics corridors, hosting universities, colleges, research institutions, skill centres and residential facilities. To address challenges faced by girl students in higher education STEM institutions, one girls’ hostel will be established in every district through Viability Gap Funding (VGF) or capital support. To promote astrophysics and astronomy, four telescope infrastructure facilities will be set up or upgraded: the National Large Solar Telescope, National Large Optical-Infrared Telescope, Himalayan Chandra Telescope, and Consolidated Outcome-based Scheme for Mission Organic Development Phase-2 (COSMOS-2) Planetarium.
• Tourism
  • The tourism sector was highlighted as having strong potential for employment generation, forex earnings and local economic development.
  • A National Institute of Hospitality will be set up by upgrading the National Council for Hotel Management and Catering Technology, serving as a bridge between academia, industry and Government.
  • A pilot scheme was proposed to upskill 10,000 tourist guides across 20 iconic sites through a standardised 12-week hybrid training programme in collaboration with an Indian Institute of Management.
  • A National Destination Digital Knowledge Grid will be established to digitally document cultural, spiritual and heritage sites, creating new opportunities for researchers, historians, content creators and technology partners.
  • Ecologically sustainable tourism initiatives will include development of mountain trails, turtle trails and bird-watching trails across specified regions.
  • India will host the first Global Big Cat Summit, following the establishment of the International Big Cat Alliance in 2024, bringing together leaders from around 95 countries to discuss conservation strategies.
• Heritage and Culture Tourism: Fifteen archaeological sites, including Lothal, Dholavira, Rakhigarhi, Adichanallur, Sarnath, Hastinapur and Leh Palace, will be developed into experiential cultural destinations, with curated walkways and immersive storytelling technologies to support conservation, interpretation and visitor engagement.
• Sports: To build on the foundations laid under the Khelo India programme, a Khelo India Mission was proposed to transform the sports sector over the next decade. The Mission will support:
  • An integrated talent development pathway across foundational, intermediate and elite levels.
  • Systematic development of coaches and support staff.
  • Integration of sports science and technology.
  • Competitions and leagues to promote sports culture.
  • Development of sports infrastructure for training and competition.

Third Kartavya: Sabka Sath, Sabka Vikas towards a Viksit Bharat

The third Kartavya aligns with the vision of Sabka Sath, Sabka Vikas, requiring targeted interventions to ensure inclusive growth across regions and communities. The focus areas include increasing farmer incomes, empowering Divyangjan, strengthening access to mental health and trauma care, and accelerating development in the Purvodaya States and the North-Eastern Region.

Increasing Farmer Incomes

• Fisheries: Initiatives were proposed for the integrated development of 500 reservoirs and Amrit Sarovars. Measures will be taken to strengthen the fisheries value chain in coastal areas and enable market linkages involving start-ups, women-led groups and Fish Farmers Producer Organisations.
• Animal Husbandry: To generate quality employment in rural and peri-urban areas, entrepreneurship in the animal husbandry sector will be supported through:
  • A Credit-Linked Subsidy Programme.
  • Scaling up and modernisation of livestock enterprises.
  • Creation of integrated value chains focused on livestock, dairy and poultry.
  • Encouragement of Livestock Farmer Producer Organisations.
• High Value Agriculture: Support will be provided for high value crops to diversify farm outputs, enhance productivity and create employment. This includes coconut, sandalwood, cocoa and cashew in coastal areas; agar trees in the North-East; and almonds, walnuts and pine nuts in hilly regions.
• Coconut Promotion Scheme
  • Recognising India as the world’s largest producer of coconuts, and the dependence of around 30 million people, including nearly 10 million farmers, on coconut livelihoods, a Coconut Promotion Scheme was proposed. The scheme aims to increase production and productivity through interventions such as replacing old and non-productive trees with improved varieties in major coconut-growing States.
• Cashew, Cocoa and Sandalwood
  • A dedicated programme was proposed for Indian cashew and cocoa to achieve self-reliance in raw material production and processing, enhance export competitiveness, and develop Indian Cashew and Indian Cocoa as premium global brands by 2030.
  • In partnership with State Governments, focused cultivation and post-harvest processing of sandalwood will be promoted to restore the Indian sandalwood ecosystem.
• Horticulture in Hilly Regions: A dedicated programme was proposed to rejuvenate old, low-yielding orchards and expand high-density cultivation of walnuts, almonds and pine nuts, with an emphasis on value addition and youth engagement.

Bharat-VISTAAR: Bharat-VISTAAR (Virtually Integrated System to Access Agricultural Resources) was proposed as a multilingual AI-based tool integrating AgriStack portals and Indian Council of Agricultural Research (ICAR) agricultural practice packages. The system aims to enhance farm productivity, enable better decision-making and reduce risks by providing customised advisory support to farmers.

SHE-Marts for Rural Women-led Enterprises: Building on the success of the Lakhpati Didi Programme, Self-Help Entrepreneur (SHE) Marts were proposed to support women in transitioning from credit-led livelihoods to enterprise ownership. These will be set up as community-owned retail outlets within cluster-level federations through enhanced and innovative financing mechanisms.

Empowering Divyangjan

• Divyangjan Kaushal Yojana: To ensure dignified livelihoods, customised and industry-relevant training will be provided for Divyangjan in sectors such as IT, AVGC, hospitality, and food and beverages, which offer task-oriented and process-driven roles.
• Divyang Sahara Yojana: To ensure timely access to high-quality assistive devices, the Government proposed:
  • Supporting Artificial Limbs Manufacturing Corporation of India (ALIMCO) to scale up production, invest in R&D and integrate AI.
  • Strengthening PM Divyasha Kendras and setting up Assistive Technology Marts as modern retail-style centres for Divyangjan and senior citizens.

Mental Health and Trauma Care: To address regional gaps in mental healthcare, the Government proposed setting up NIMHANS-2 and upgrading the National Mental Health Institutes in Ranchi and Tezpur as Regional Apex Institutions. Emergency and trauma care capacities in District Hospitals will be strengthened and expanded by 50% through the establishment of Emergency and Trauma Care Centres, particularly to support poor and vulnerable families during emergencies.

Focus on the Purvodaya States and the North-Eastern Region

• Purvodaya: Proposals include development of an integrated East Coast Industrial Corridor with a well-connected node at Durgapur, creation of five tourism destinations across the five Purvodaya States, and provision of 4,000 e-buses.
• Buddhist Circuits in the North-Eastern Region : A Scheme for Development of Buddhist Circuits was proposed for Arunachal Pradesh, Sikkim, Assam, Manipur, Mizoram and Tripura. The scheme will cover preservation of temples and monasteries, development of pilgrimage interpretation centres, improved connectivity, and enhanced pilgrim amenities.

16th Finance Commission

• The 16th Finance Commission submitted its report to the President on November 17, 2025.
• As mandated under Article 281 of the Constitution, the Government will lay the Report in Parliament along with the Explanatory Memorandum on the Action Taken Report.
• The Government has accepted the recommendation to retain the vertical share of devolution at 41%.
• As recommended by the Commission, Rs. 1.4 lakh crore (US$ 15.27 billion) has been provided to the States in FY27 as Finance Commission Grants, including Rural and Urban Local Body Grants and Disaster Management Grants.

Fiscal Consolidation

• The Government reaffirmed its commitment to fiscal discipline while safeguarding social sector priorities.
• As outlined in Budget 2025–26, the Central Government targets achieving a debt-to-GDP ratio of 50±1% by 2030–31.
• In line with this path:
  • Debt-to-GDP ratio is estimated at 55.6% in Budget Estimates 2026–27 (BE 2026–27), compared to 56.1% in Revised Estimates 2025–26 (RE 2025–26).
  • A declining debt ratio is expected to free up resources for priority expenditure by reducing interest outgo.
• Fiscal deficit, a key operational instrument for debt targeting:
  • Stood at 4.4% of GDP in RE 2025–26, in line with BE estimates.
  • Is estimated to decline further to 4.3% of GDP in BE 2026–27, in accordance with the fiscal consolidation roadmap.

Revised Estimates 2025–26

• Non-debt receipts are estimated at Rs. 34 lakh crore (US$ 370.84 billion), of which net tax receipts of the Centre are Rs. 26.7 lakh crore (US$ 291.22 billion).
• Total expenditure under Revised Estimates is Rs. 49.6 lakh crore (US$ 541 billion), including capital expenditure of about Rs. 11 lakh crore (US$ 119.98 billion).

Budget Estimates 2026–27

• For FY27, non-debt receipts are estimated at Rs. 36.5 lakh crore (US$ 398.11 billion), while total expenditure is estimated at Rs. 53.5 lakh crore (US$ 583.54 billion).
• The Centre’s net tax receipts are projected at Rs. 28.7 lakh crore (US$ 313.04 billion).
• To finance the fiscal deficit:
  • Net market borrowings from dated securities are estimated at Rs. 11.7 lakh crore (US$ 127.61 billion).
  • Gross market borrowings are estimated at Rs. 17.2 lakh crore (US$ 187.60 billion), with the balance financing expected from small savings and other sources.