The Union Budget for FY27 set out three focus areas: sustaining and accelerating economic growth, capacity building amongst people, and equitable and meaningful participation. Recognising that giving manufacturing-based jobs to the teeming masses is a pillar towards this, numerous schemes to boost the sector were outlined. At the same time, the infrastructure focus was retained, with an invite given to private sector to increase their capex. The fiscal math seems harder for FY27, with moderate increases in revenue receipts meeting steady capex growth. The Report discusses the drivers which could determine if the fiscal targets could be met by an analysis of receipts and expenditures. Finally, an analysis of the borrowing proposed is presented.
