The Union Budget for the 2026–27 fiscal year will be presented on Sunday, February 1, with the government expected to prioritise job creation, agricultural development, inclusive manufacturing and digital transformation, according to experts.Osmania University Professor Satish Raikindi outlined a range of expectations from the upcoming budget, suggesting that the government is likely to place emphasis on job creation, agricultural development, inclusive manufacturing and digital transformation to support sustainable growth.He added that key sectors such as defence, infrastructure, including railways, MSMEs, rural development and the green economy could see heightened focus and investment. According to Raikindi, the budget may also include measures aimed at addressing prevailing challenges and offering relief to the common man.“The present Indian economy plays a vital role, and for sustainable growth, we can look forward with optimism. The government of India is prioritising areas such as job creation, agricultural development, inclusive manufacturing, digital transformation, rural-urban integration, and the green economy,” he was quoted as saying by ANI. Raikindi said prioritising key sectors could help drive sustainable growth across the country, adding that the public is expecting relief in areas such as taxation, housing, healthcare, jobs and education. He noted that the Budget is likely to focus on defence, infrastructure, including railways, MSMEs, rural development and the green economy.Osmania University Professor M Ramulu flagged concerns ahead of the Union Budget, saying India’s investment pattern remains heavily skewed towards capital-intensive industries, particularly manufacturing and large industrial projects that deliver higher growth and profits.He argued that this approach has left smaller segments, such as startups, small-scale units and area-based industries, largely on the margins. Ramulu also pointed out that the concentration of investments in capital cities and major metropolitan centres has added to environmental stress, pollution and mounting population pressure, underlining the need for a more balanced spread of economic activity.“Most capital is flowing into capital-intensive industries where growth rates and profits are high, particularly in industrial and manufacturing sectors. These investments should also percolate to small sectors such as startups, small-scale industries, and area-based industries. Currently, most investments are concentrated in capital and metropolitan cities, which creates environmental issues, pollution, and excessive population concentration. I expect that in this budget, investments should be distributed across all states, especially toward agro-based industries, small startup manufacturing units, and decentralised industries, rather than focusing only on large industries,” Ramulu was quoted as saying by ANI. Ramulu called for a sharper targeting of welfare schemes, arguing that benefits often go to those who are already economically secure while a large section of the poor remains excluded. He said better identification of beneficiaries would help curb wasteful spending and allow funds to be redirected towards productive investments, particularly in education and healthcare, rather than limiting welfare support to food subsidies alone.On the Goods and Services Tax, Ramulu acknowledged the gains from a unified tax regime but flagged concerns over how revenues are being distributed. He suggested that a more horizontal approach, through lower tax rates, could help widen the tax base by bringing more people into the system.“GST is a good system because it brings all taxes together, and tax centralisation has its advantages. However, distribution remains a major concern. States like Tamil Nadu, Karnataka, and Telangana are demanding a larger share, as the Centre collects a major portion and allocates a smaller share to states, leading to dissatisfaction. Balanced development across all states is essential. Instead of focusing on vertical expansion, the government should adopt a horizontal approach by reducing tax rates to include more people in the tax net. If tax rates are lowered, people will be more motivated to disclose their income voluntarily,” Ramulu added. Ramulu said the expanding role of private education and industry has coincided with a sharp contraction in the government sector, with the benefits of private growth failing to reach a wider population. He stressed that profits must be channelled back into productive use and called for better use of resources, a rationalisation of welfare schemes, and a more balanced approach to taxation and investment to support higher growth.
