Budget 2026: Gung-ho on investments, tight on deficit

The budget manages to deliver significant growth stimulus through targeted expenditure. Revenue expenditure growth is budgeted at 6.7% in FY27, moderating from 7.2% in FY26 revised estimates. By holding revenue expenditure growth down, GoI creates the fiscal headroom to push capex higher without breaching deficit targets. This approach of maintaining high capex while reducing the fiscal deficit demonstrates GoI's strategy of maximising growth multiplier effect of public spending.