The Union Budget for 2026-27 is presented as a consolidation plan that prioritises public investment and fiscal prudence. Capital spending is budgeted at Rs 12.2 trillion (tn), signalling a continued focus on infrastructure and logistics as growth enablers. The Centre targets a fiscal deficit of four point three per cent while aiming to reduce its debt-to-GDP to 55.6 per cent in FY27. The Budget sets a clear strategy for the services sector with an ambition to achieve 10 per cent of global services and measures to support information technology, tourism, health and creative industries. Policy steps include extended tax incentives for cloud services, pilot schemes to upskill 10,000 tourist guides across 20 iconic sites and the establishment of five hubs for medical value tourism. Education and skilling measures include embedding artificial intelligence in curricula, formation of an Education to Employment and Enterprise committee and development of university townships. Manufacturing support spans semiconductor policy, chemical parks and rare earth corridors, and the Electronics Components Manufacturing Scheme outlay is raised from Rs 23,000 crore to Rs 40,000 crore, equivalent to Rs 230 billion (bn) and Rs 400 billion. A Rs 100 billion container manufacturing programme and measures for textiles, capital goods and sports goods aim to boost capacity; the Rs 100 billion SME Growth Fund will provide equity support for smaller firms. Special measures to revive 200 legacy industrial clusters and concessional duties for eligible special economic zone units are intended to spur domestic sales and competitiveness. Financial sector reforms include a high-level committee on banking, changes to buyback taxation and steps to improve corporate bond market functioning, alongside a rise in securities transaction tax on derivatives. Incentives include an Rs one bn reward for single municipal bond issuances exceeding Rs 10 bn and measures to mobilise TReDS receivables as asset-backed securities to ease MSME liquidity. Dividend receipts and disinvestment assumptions are elevated with transfers budgeted at Rs 3.2 trillion (tn) and PSU dividends at Rs 750 billion (bn), while miscellaneous capital receipts are raised to about Rs 800 billion to support the revenue outlook and spending quality.