Finance Minister Nirmala Sitharaman is set to present the Union Budget 2026 on February 1, with reports suggesting a significant departure from a 75-year-old parliamentary tradition. Historically, the budget speech is divided into two segments: Part A, covering government schemes and expenditures, and Part B, focusing on tax proposals and policy announcements. According to sources, the upcoming budget may see Part B transformed into a detailed strategic vision for India's economic future.
Redefining Part B: A Strategic Economic Roadmap
Sources indicate that the Finance Minister intends to use Part B of her speech to outline a comprehensive roadmap that balances short-term priorities with long-term national goals. This shift aims to align India's domestic economic strengths with its global aspirations, while instead of being limited to routine tax changes, Part B is expected to present a blueprint for the nation's economic trajectory over the coming years, providing clarity to both domestic and international stakeholders.
A History of Breaking Traditional Norms
This will be Nirmala Sitharaman's ninth consecutive budget presentation. Since taking office, she has consistently moved away from colonial-era practices. In 2019, she replaced the traditional leather briefcase with the 'Bahi-Khata' (a ledger wrapped in red cloth). Subsequently, the budget transitioned to a fully digital, paperless format over the last four years. The potential restructuring of the speech format is seen as another step toward modernizing India's financial governance.
Fiscal Deficit Targets and Capital Expenditure
On the fiscal front, the government is closely monitoring the deficit targets. 4% of GDP. Analysts suggest that the government may aim for a fiscal deficit target of 4% for the financial year 2026-27.2 lakh crore, is expected to see an increase of 10-15%, potentially exceeding ₹12 lakh crore to sustain infrastructure growth.
Focus on Social Security and Sectoral Growth
The upcoming budget is anticipated to place a strong emphasis on social security through specialized schemes like 'G RAM G', while significant attention is also expected on the budgetary allocations for the health and education sectors. Economists believe that the roadmap presented in the budget will focus on structural reforms necessary to position India as a global economic powerhouse in the second quarter of the 21st century.
Expert Analysis and Conclusion
According to economic analysts, the proposed change in the budget speech structure reflects a shift toward long-term strategic planning over annual fiscal adjustments. By integrating a vision document into Part B, the government aims to provide a more stable and predictable policy environment. As the nation awaits the presentation on February 1, the focus remains on how these structural changes will influence India's growth narrative and fiscal consolidation path.