New Delhi: Finance Minister Nirmala Sitharaman is poised to depart from a long-standing Union Budget convention, marking a significant change in how the government presents its economic vision. For the first time in nearly 75 years, Part B of the Budget speech is expected to go beyond routine tax proposals and policy tweaks, and instead lay out a comprehensive roadmap for India’s economic future.
Traditionally, the core narrative and strategic direction of the Budget have been concentrated in Part A, with Part B largely reserved for taxation measures and technical policy announcements. This year, however, sources indicate that Part B will be used to spell out both immediate priorities and long-term national goals as India moves deeper into the 21st century, balancing domestic strengths with global aspirations.
The shift has drawn keen attention from economists and market observers in India and abroad, who are expecting a broader policy framework rather than a narrow focus on fiscal adjustments. The Budget is likely to be watched not just for tax changes, but for signals on India’s growth strategy, competitiveness, and economic positioning in a rapidly changing global landscape.
This will be Sitharaman’s ninth consecutive Union Budget, further cementing her place in India’s fiscal history. In her first Budget in 2019, she had already broken with tradition by replacing the iconic leather briefcase with a red cloth-wrapped bahi-khata. Continuing recent practice, this year’s Budget will also be presented in a completely paperless format, as has been done for the past four years.
With the government having outlined a fiscal consolidation path that brings the deficit below 4.5 per cent of GDP by 2026, markets are now focused on the next steps. Analysts will closely examine whether the Budget for fiscal 2027 offers a clear strategy for reducing the debt-to-GDP ratio and whether a specific fiscal deficit target is announced for the coming financial year.
Capital expenditure is expected to remain a central pillar of the government’s economic approach. For the current fiscal, capital spending has been budgeted at ₹11.2 lakh crore, and indications suggest that the upcoming Budget may raise this target by 10 to 15 per cent. The emphasis on public investment is seen as crucial, especially at a time when private sector investment remains cautious.
Another key indicator will be the nominal GDP growth projection for fiscal 2027, which will provide insights into the government’s inflation outlook. Estimates suggest the figure could be set between 10.5 and 11 per cent, offering clues about anticipated price trends and overall economic momentum.
Attention is also likely to focus on allocations for major welfare and development schemes, along with spending priorities in critical sectors such as health and education. Together, these elements are expected to define not just the Budget’s immediate impact, but its role in shaping India’s medium- and long-term economic trajectory.