Finance Minister Nirmala Sitharaman is set to present her record ninth straight Union Budget, with markets closely tracking headline numbers ranging from the fiscal deficit and capital expenditure to borrowing and tax revenue projections, as India charts its course as the world’s fastest-growing major economy.The Budget will be presented in a paperless format, continuing the practice of recent years. Sitharaman had, in her maiden Budget in 2019, replaced the traditional leather briefcase with a red cloth–wrapped bahi-khata, marking a symbolic shift in presentation.Here are the key numbers and signals that investors, economists and policymakers will be watching in the Union Budget for 2025-26 and beyond:
Fiscal deficit
The fiscal deficit for the current financial year (FY26) is budgeted at 4.4 per cent of GDP, as reported PTI. With the government having achieved its consolidation goal of keeping the deficit below 4.5 per cent, attention will turn to guidance for FY27. Markets expect the government to indicate a deficit closer to 4 per cent of GDP next year, alongside clarity on the medium-term debt reduction path.
Capital expenditure
Capital spending remains a central pillar of the government’s growth strategy. Capex for FY26 is pegged at Rs 11.2 lakh crore. In the upcoming Budget, the government is expected to continue prioritising infrastructure outlays, with a possible 10–15 per cent increase that could take capex beyond Rs 12 lakh crore, especially as private investment sentiment remains cautious.
Debt roadmap
In her previous Budget speech, the finance minister had said fiscal policy from 2026-27 onwards would aim to keep central government debt on a declining trajectory as a share of GDP. Markets will look for a clearer timeline on when general government debt-to-GDP could move towards the 60 per cent target. General government debt stood at about 85 per cent of GDP in 2024, including central government debt of around 57 per cent.
Borrowing programme
Gross market borrowing for FY26 is estimated at Rs 14.80 lakh crore. The borrowing number announced in the Budget will be closely scrutinised, as it signals the government’s funding needs, fiscal discipline and potential impact on bond yields.
Tax revenue
Gross tax revenue for 2025-26 has been estimated at Rs 42.70 lakh crore, implying an 11 per cent growth over FY25. This includes Rs 25.20 lakh crore from direct taxes—personal income tax and corporate tax—and Rs 17.5 lakh crore from indirect taxes such as customs, excise duty and GST.
GST collections
Goods and Services Tax collections for FY26 are projected to rise 11 per cent to Rs 11.78 lakh crore. Projections for FY27 will be keenly watched, especially as GST revenue growth is expected to gather pace following rate rationalisation measures implemented since September 2025.
Nominal GDP growth
Nominal GDP growth for FY26 was initially estimated at 10.1 per cent but has since been revised down to about 8 per cent due to lower-than-expected inflation, even as real GDP growth is pegged at 7.4 per cent by the National Statistics Office. The FY27 nominal GDP assumption—likely in the 10.5–11 per cent range—will offer clues on the government’s inflation and growth outlook.
Spending priorities
Beyond the headline aggregates, the Budget will also be scanned for allocations to key social and development schemes, as well as spending on priority sectors such as health and education.Together, these numbers will shape expectations on fiscal discipline, growth momentum and policy support as India navigates a complex global economic environment.
