lipped from: https://www.financialexpress.com/business/news/fiscally-prudent-budget-to-persist-on-reforms-course/4126092/
Customs rejig, continued focus on job creation likely
Union Budget FY27: Nirmala Sitharaman Set to Balance Fiscal Prudence with a New ‘Debt-GDP’ Anchor
Finance Minister Nirmala Sitharaman will unveil the Budget FY27 in Parliament on Sunday against the backdrop of an unusually volatile external world and relative domestic resilience. She is widely expected to remain conservative on the fiscal front, given the need to maintain buffers for global shocks amid heightened geopolitical competition.
Yet, a recalibration of the fiscal policy with the debt-GDP ratio as the main anchor may slow the pace of fiscal consolidation compared to the sharp tightening of the immediate post-pandemic years. This would allow reasonable growth in budgetary capital expenditure in the next financial year, besides the rolling out of new schemes or higher outlays to support exports and assorted manufacturing sectors. The Budget may also signal the government’s resolve to continue with structural and governance reforms and prepare the economy for the long haul to achieve the Viksit Bharat goal.
Shifting Gears
Tax policy rationalisation is likely to remain on track. Customs duties, which tend to jack up export costs, may be trimmed across tariff lines, and Customs procedures substantially eased.
Global Integration
A few Budget announcements would be aimed at attracting foreign capital, which has turned cautious about India of late, causing the rupee to “punch much below its weight”. The Budget may also pay heed to the Economic Survey and lay down a long-term policy roadmap, envisioning India as a country producing sustained external surpluses.
Higher support to MSMEs, more initiatives to boost youth employment, and a streamlining of rural livelihood programmes are also expected.
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