After Budget 2026-27 was presented on a Sunday, government spokespersons, editorial writers, commentators and journalists used the word ‘cautious’ and the phrase ‘don’t rock the boat’ to describe the Budget. I suppose they followed an American colloquialism ‘If it ain’t broke, don’t fix it’.

Multiple Challenges

The Economic Survey 2025-26 (ES) had identified the challenges facing the Indian economy. Among them are —

No country has become a middle-income country without becoming a manufacturing power. India’s manufacturing sector has contributed barely 15-16 per cent of GDP in the last 10 years. Make in India, PLI and other schemes have failed to create jobs.

Fiscal consolidation is agonizingly slow: the fiscal deficit will move from 4.4 per cent in 2025-26 to 4.3 per cent in 2026-27 and the revenue deficit will remain at 1.5 per cent. At this rate, it will take 12 years or more to reach the FRBM targets, and we will pay a heavy price.

The tax gamble of 2025-26 has failed massively. The budget arithmetic was saved by the RBI which gave a........

© Mathrubhumi English