“A country is not the soil, but the people, and people need education, health, and skilling.” This modern reinterpretation of the Telugu poet’s wisdom, quoted by the Finance Minister, captures the essence of nation-building — that human capability is the real foundation of national progress. Today’s Union Budget 2026-27 does more than balance numbers; it strengthens the runway for India’s take-off and a smooth economic glide while investing in capabilities that transform citizens into empowered contributors to national destiny.
This budget is not merely accounting; it is a strategic curriculum for the nation, embedding priorities that shape the India of tomorrow.
Fiscal Discipline: A Stable Runway for Growth
The government has targeted a fiscal deficit of 4.3% of GDP for FY27, marginally improving from an expected 4.4% in FY26, reflecting continued fiscal consolidation and macro-economic stability. The deficit will be financed through domestic borrowings, savings, and investment — signalling confidence in India’s own financial ecosystem and reducing external vulnerability.
This disciplined fiscal stance provides the stability needed for long-term growth, even as capital expenditure is expanded, a rare but powerful combination.
Capital Expenditure as the Engine of Infrastructure and Inclusion
A key strength of this Budget is the further expansion of capital expenditure (capex) to Rs12.2 lakh crore, up nearly 9% from the previous year. The focus on long-term infrastructure — roads, railways, logistics corridors, urban and rural connectivity — is central to India’s growth strategy.
Capex is the engine that builds the physical and digital structures necessary for development — and in this Budget, that engine is firing on multiple cylinders:
- Future-ready infrastructure in Tier-2 and Tier-3 cities
- Strategic high-speed and freight corridors
- Dedicated ports and waterways expansion
- Enhanced transport and manufacturing infrastructure
By integrating infrastructure with economic zones and logistics, the Budget supports employment creation and productivity growth across sectors.
Correcting Competitiveness — Ending the “Upside-Down Syndrome”
For too long, India’s manufacturing ecosystem struggled with an inverted duty structure, where inputs sometimes faced higher tariffs than finished imports. The Budget clearly reiterates support for domestic manufacturing and incentives to MSMEs, Startups, and Make in India, to make Indian enterprises more globally competitive. This structural correction enhances competitiveness while boosting economic sovereignty.
Technology and Skilling for the Future — Investing in Minds Before Money
In keeping with the demands of geopolitics, the volatility of world markets, and future trends, the Budget rightly identifies AI, data, electronics, semiconductors, and rare earths as future-defining sectors requiring advanced capabilities, research, and skilling.
In the education domain, the Budget introduces transformative measures such as:
- A Rs1.39 lakh crore education allocation, signalling a rise in priority
- Proposals such as University townships, linking academia with industrial and logistics hubs
- Girls’ hostels in every district, promoting gender inclusion and access to STEM and higher education
- Proposed AI and skills integration into education pathways, preparing students for future careers
These measures reflect a shift from spending on schooling as an output to empowering learning as a capability. This interfaces with jobs, innovation, and economic participation.
Education, Inclusion, and Equity — Building Human Capital
Education has received clear structural attention in this Budget, with multiple pathways to both expand and enrich access:
- Content labs across secondary schools
- Mental health and well-being infrastructure
- A network of institutes in pharmaceutical, hospitality, and creative technologies
- Astronomy and niche science infrastructure
These represent investments in human capability, broadening not just access, but quality, relevance, and future alignment. The initiative to build a girls’ hostel in every district marries equity with empowerment, making education safer, more accessible, and socially enabling for young women nationwide.
Rural Transformation and Inclusive Prosperity
This Budget also places renewed emphasis on rural economies and agricultural modernisation, increasingly seen as engines of inclusive growth: Agriculture allocation boosted to Rs1.63 lakh crore, underscoring support for high-value and allied sectors. Focus on rural prosperity with technology and value-chain orientations in the 100 aspirational districts, integration of youth and women through targeted programmes aligns with the foundational belief that rural prosperity enhances national strength.
Governance and Citizen Aspiration
The Finance Minister’s reference from Tirukkural, “people want good governance and a responsive government,” resonates strongly in this Budget’s thrust on results-oriented deliverables, integration with States, and citizen outcomes. The collaborative approach with States, especially in sectors like agriculture and infrastructure, points to cooperative federalism in action, not just theory.
A Future-Ready, Viksit Bharat Budget
This Budget demonstrates that strong fundamentals — fiscal discipline, ambitious capex, corrected competitiveness, and investment in human capability — are not abstract goals but implemented realities. However, institutionalising budget literacy, expanding learning outcome metrics, specialised skilling hubs, and a disability and inclusion focus will make the Budget a citizen’s Budget.
It recognises that a nation’s strength is not in soil alone, but in the knowledge, skills, agency, and aspiration of its people. It embraces the idea that economies need not just a runway, but a trajectory built on infrastructure, inclusion, and innovation. The Budget aligns with the larger vision of Viksit Bharat, where prosperity is inclusive, growth is sustainable, and citizens are empowered partners in shaping the nation’s journey.
(The author, a former school principal, is a policy and governance analyst. He can be reached at ashokpdy@gmail.com)
