Nirmala Sitharaman's Big Break From 75-Year-Old Budget Tradition

This year's Union Budget is set to break with a 75-year tradition. Finance Minister Nirmala Sitharaman is expected to use Part B of her speech to unveil a detailed vision for India's economic future, sources told NDTV.

In past Union Budgets, most of the substance lay in Part A, while Part B was confined to tax and policy announcements.

This time, Part B is expected to outline both short-term priorities and long-term goals as India enters the second quarter of the 21st century, highlighting the country's local strengths and global ambitions, sources said.

Economists in India and abroad are watching closely, anticipating a roadmap that goes far beyond routine tax changes.

This would be Sitharaman's ninth straight Budget. She had in her first Budget in 2019 replaced the leather briefcase - which had been in use for decades for carrying Budget documents - with a traditional 'bahi-khata' wrapped in red cloth. This year's budget will be in paperless form, as done in the last four years.

Having achieved a fiscal consolidation roadmap with a deficit below 4.5 per cent of GDP in fiscal 2026, markets will keenly watch for direction on debt-to-GDP reduction in the Budget for fiscal 2027. They will also see whether the government will provide a specific fiscal deficit number for the next financial year.

The government's planned capital expenditure for this fiscal is budgeted at Rs 11.2 lakh crore. The government is likely to maintain its focus on capital expenditure in the latest Budget, with a 10-15 per cent increase in the capex target from the current level, as private sector players remain cautious.

Nominal GDP growth projections for fiscal 2027 in the Budget will give an idea about the inflation trajectory ahead. As per the various estimates, the government may announce a nominal GDP between 10.5 and 11 per cent for the next fiscal.

Spotlight would also be on spending on key schemes like G RAM G, as well as key sectors like health and education.