Analysisfiscal policypublic financeindustrial policysubsidies
Indian Budget Prioritizes Fiscal Prudence Over Growth
6.1
Relevance Score
The author critiques India's 2026-27 Union budget as fiscally prudent but narratively incoherent, arguing the government remains structurally constrained and that tax buoyancy and disinvestment have failed. The budget shifts emphasis from annual deficit targets to debt levels, sustains sizable subsidies (1.59% of GDP in 2025-26), and lacks medium-term projections or a coherent industrial policy, undermining prospects for broad-based wage and employment gains.
