The Union Budget 2026–27 balances taxpayer relief with long-term economic growth, focusing on infrastructure, education, MSMEs, rare earth minerals, healthcare, green energy, and Viksit Bharat goals
Sudhakar Panda
After the presentation of the Union Budget in the Parliament by the Finance Minister, as it is every section of the society starts dissecting the Budget to know where he stands, what he gains, what he is likely to lose visa-a-vis what other sections of the society like the business class, the corporate sector, the salaried class, the pensioners get in terms of tax benefits, medical benefits, old age benefits and other benefits. It has always been a situation of me vis-à-vis you while looking at the budget. I look at the Budget from both a short term view and a long term view. I associate myself with the short term view more closely and with the long term view keeping the long term growth of the Indian economy.
In the short term many will agree with me that there are reasons to be happy as there has been no change in the Income Tax regime which has direct impact on the tax payers like me. The richer sections have also been spared any threat of higher taxation. So the salaried class and the corporate executives are also happy that they have also been spared from payment of higher tax. To the satisfaction of the direct taxpayers some changes are there in the slabs of taxation that may benefit the taxpayers. The Corporate Sector has every reason to welcome the Budget as there has been no change in the tax rates on the corporate sector keeping in view the critical role they play in the development of the Indian economy. The tax payers have legitimate reasons to feel greatly relieved that the Finance Minister has not touched them. The Budget has offered to go for further simplification of procedures for the tax payers to remove any irritants in tax payment. An interesting feature has been added to tax payment in terms of joint taxation where both husbands and wife are tax payers.
If I take a long term view of the Union Budget I have to have a longer perspective on the Union Budget 2026-27. The Government has to be steadfast in addressing the issue of Infrastructure development for facilitating the growth of the economy keeping in view the role this sector and the construction sector to ensure no interruptions are allowed that may adversely affect or interrupt the pace of sustained growth of the economy at an average rate of 6.5 per cent of growth in India’s GDP. Given the pace and growth of the economy the Government has created the scope for channeling resources to create National Institutions of Importance and connecting them meaningfully to the future. That is an attempt is made in the Budget to connect the present to the future without any interruptions for creating avenues for sustained growth which may be more diversified but more meaningful as well for the purpose of national growth.
The Government will focus on infrastructure development, development of industries, MSMEs, textile sector, and provide necessary encouragement for foreign investments in India. The Government, as mentioned in the Budget proposes to set up new academic institutions/five new universities, educational hubs/educational townships, new hospitals, promote external trade and set up five new Universities, focus on the study of Astrophysics and Astronomy that have great scientific relevance for India’s future. It is also proposed in the Budget to establish Three All India Institute of Ayurvedic Medicines in the pattern of AIIMS, export quality Ayurvedic drugs, create new Medical Hubs, promote Medical Tourism, promote the cultivation of new high value crops to add to the income of the farmers, encourage development of green energy, provide encouragement for coconut cultivation which is a source of livelihood for many families. It is also proposed in the Budget to set up National Design Centres, emphasize Skill Development, encourage Development of Robotics and popularization of AI in different languages. There is also a provision in the Budget to set up a National Institute of Hospitality to promote the tourism industry in India. There will be promotion of bio research, provision of Girls’ Hostel in each and every district of the country. It is also proposed to set up a new NIMHAS in North East region in the pattern of NIMHAS, Bangalore. This will be greatly helpful to the people of North Eastern India.
States like Odisha, Andhra Pradesh, Tamil Nadu, and Kerala are rich in minerals. The Union Budget 2026-27 has proposed to establish a dedicate Rare Earth Corridors. This is in the larger interest of the Indian economy. This is expected to “boost the mining, processing and manufacture of rare earth minerals.” The importance of rare earth in the different fields of industries cannot be emphasized. This may help the country to strengthen its supply chain, “reduce reliance on imports and support the production of Sintered Rare Earth Permanent Magnets (REPM)”. This proposal in the Budget will have powerful impact on the development of the economy.
It has also been proposed in the Budget to set up five new universities and placed emphasis on the study Astronomy and Astrophysics. The National Budget for the first time has indicated that the Municipalities and Municipal Corporations can raise Bonds to finance their activities. It has also been proposed to develop North Eastern Region for the promotion of tourism in 2026-27 can be expected to help in accelerating the economic development of India. The Budget 2026 with all its proposed provisions may help us in having a Viksit Bharat where development reflects “Sabke Saath, Sabke Vikas,” in a Vikasit Bharat.
(The author is a former Vice-Chancellor of BGU Bhubaneswar and former Head of the Department of Economics, Utkal University. Views expressed are personal.)