Purpose: This study examines India's Union Budget 2026–27 as a comprehensive fiscal
instrument to steer the national economy toward sustained and inclusive growth. The budget represents a calibrated policy response to both domestic imperatives and evolving global economic conditions. Design/Methodology/Approach: The paper employs a qualitative analytical framework based on a systematic review of budget documents, Economic Survey findings and macroeconomic indicators (Government of India, 2026a; Government of India, 2026b).
Methodology: The study undertakes a sector-wise analysis by organising budget allocations into thematic categories and supporting the evaluation with comparative fiscal data. Findings: The Union Budget 2026–27 places strong emphasis on expanding capital expenditure, achieving fiscal consolidation with a deficit target of 4.3% of GDP and promoting strategic investments across key sectors such as infrastructure, advanced manufacturing, MSMEs, technology and human capital. The analysis suggests a clear policy shift toward supply-side measures to strengthen long-term productive capacity, while also incorporating provisions to address equity and inclusive development. Originality/Value: This paper offers a comprehensive and original evaluation of the budget by integrating its macroeconomic framework, sectoral transmission mechanisms, and potential implementation challenges. It provides meaningful insights for policymakers, economists, and development professionals.
Keywords: Union Budget 2026–27, Fiscal Policy, Capital Expenditure, Infrastructure,
MSMEs, Macroeconomic Policy, India, Economic Growth