Copyright © HT Digital Streams Limit all rights reserved. From mid -November, officials led by the Minister of Finance, Nirmala Sitharaman, ministers, economists and industry representatives of the input industry, two people who are aware of internal discussions said on condition of anonymity. (HT) Finance Minister Nirmala Sitharaman begins economists and stakeholders in November with a great exercise that ends with the presentation of the union budget in January. Here are the issues that are likely to dominate the discussions, and the probable theme of the Union budget 2026-27. The Ministry of Finance Finance kicked off discussions with various government departments and agencies before the next Union budget, which is expected to be offered at the end of January. From mid -November, officials led by the Minister of Finance, Nirmala Sitharaman, ministers, economists and industry representatives of the input industry, two people who are aware of internal discussions said on condition of anonymity. The budget will aim to make the country more independent and prosperous, supported by forward -looking regulations, people said. According to one of the two people, the dominant theme of the budget of the financial year 2027 (FY27) is probably the next generation reforms, which take input from two central committees, both led by former cabinet secretary Rajiv Gauba. While one committee is working on an action plan to reach developed national status by 2047, the other regulatory reforms in the non-financial sector are studying, the person said. Systemic reforms intended to improve investor sentiment and accelerate the private investment cycle will receive special attention in the budget, the person added. Prior to the discussions of the following month, Valnam on Thursday Secretary Valnam began various departments and ministries to finalize the revised estimate for FY26 and the budget estimate for FY27. The exercise will take into account the spending pattern in the financial year so far, the collection of revenue collection, including the fiscal implications of cutting personal income tax rate offered this year, and the GST relief implemented last month, as well as the effect of the cooling of inflation on the nominal BBP and consequently tax income. Discussions with 12 departments and agencies, including the ministries of steel, Panchayati Raj and minority affairs, were completed by October 10. A ministry schedule has shown that as many as 96 meetings with different departments and agencies are planned, which must be completed by November 10. Once these discussions are over, Sitharaman is expected to start consultations from the third or fourth week of November. In addition to reforms, Budget FY27 is also expected to reflect other policy priorities set out by Prime Minister Narendra Modi in its Independence Day speech this year, technology sovereignty, confidence in sectors and greater domestic capabilities in fields such as defense and overall inclusive growth. Experts have pointed out that in light of the uncertainty surrounding US rates, measures to support the domestic industry are likely. ‘Since the last union budget, the external situation has moved in an unexpected direction. Thus, to support economic growth, the government followed its income tax relief offered in the FY26 budget with GST rate cuts. The government is expected to continue to support growth in the domestic market, ‘says Sachidanand Shukla. In the upcoming budget, the shift from the annual fiscal deficit targets to a new fiscal anchor -the debt -to -BBP ratio -would play out, ‘Shukla added. In the FY26 budget, the government said it would keep fiscal deficit from FY27 to FY31 annually, leaving the central government debt at 57.1% of the nominal GDP in FY25 to 50 ± 1% by 31 March 2031. This would be a major structural change in the Union budget, which sets the annual targets for fiscal definition. According to the Ministry of Finance, this shift from rigid annual fiscal targets to a more transparent and operational flexible fiscal standard is a more reliable measure of fiscal performance, as it captures the cumulative effects of as well as the current fiscal decisions. While maintaining the broad fiscal consolidation path, this strategy will also allow the space for growth enhancement. Shukla van Larsen & Toubro said that a proper strategy for oninvestment is the need of the hour, especially for banks owned by the state. “One hopes that the external uncertainties will subside with India and the US who agree on a bilateral trade agreement negotiated. Once that happens, the investor sentiment will be expected to boost and give further momentum to private investments,” Shukla said. Although India remains the fastest growing major economy in the world, the upcoming budget must address the reality of a fairly complicated geopolitical scenario that continues to develop, says Rishi Shah, partner and leader of economic advisory services, Grant Thornton Bharat. Private investments to encourage investments, the Modes government opened the spaces’ sector earlier, set up a £ 1 trillion fund to support research and development in technology and are currently working on the liberalization of the nuclear power sector. Investments in plant, machinery, factories and intellectual property by private non-financial corporations recovered and improved after the pandemic years of FY21 in absolute terms, but remained almost steady in FY24. As a share of GDP, it remained more or less flat at 36-37% of GDP between FY21 and FY23 and further in FY24 to 33.6%, the official data of the Statistics Ministery showed. The expenditure focus is likely to focus on three strategic priorities, says Shah. ‘First, to accelerate domestic manufacturing to better integrate India into the reorganization of global supply chains. The strategic focus on ‘Make in India’ cannot be overstated and may require another pressure. Second, the sustaining of the infrastructure investment – with £ 11.21 Lakh Crore allocated for infrastructure that is critical to ensure that it is in all regions. MSME sector, which faces the most direct tariff impact, ‘says Shah. Tax reforms with reforms that are on the top of the government agenda, federal policy Thinktank Niti Aayog on Friday said in a assignment in which the Income Tax Act is analyzed, 2025 that the new law that replaced the more than six decades existing law has failed several archaic offenses, but that they still criminate. Niti Aayog recommended that of these 35 criminal offenses identified, 12 fully decriminalized and addressed by civil or financial fines alone. The Thinktank also said 17 other offenses should maintain criminal liability, but only for fraudulent or mala-fide setup, which removes criminal sanctions for procedural procedures of good faith. Important takeaways The next generation reforms are the dominant theme for the FY27 budget, drive strategy. FM’s consultations begin in mid -November to draw up a budget focused on confidence and prosperity. Inputs of two committees lead the budget: Developed national status by 2047 and regulatory reforms. Budget to reflect the priorities of PM modes: Sovereignty for technology, confidence and inclusive growth. New debt to the GDP ratio replaces annual fiscal deficit targets; a structural change. Catch all the business news, market news, news reports and latest news updates on Live Mint. Download the Mint News app to get daily market updates. More Topics #budget #Union -Budget #Nirmala Sitharaman Read next story
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