New Delhi, Feb. 1 -- Finance Minister Nirmala Sitharaman presented the Union Budget 2026 in Parliament on Sunday, detailing the government's approach to foster economic growth by increasing capital expenditure while following a steady course of fiscal consolidation.

As per the Budget documents, the federal government of India is set to borrow a record Rs.17.2 lakh crore for the 2026-27 fiscal year, surpassing most market expectations. This gross borrowing is 17% higher than the Rs.14.61 lakh crore that was proposed for the current financial year. India's fiscal year operates from April to March.

The projected net borrowing for FY27 is expected to increase to Rs.11.73 lakh crore, up from Rs.11.33 lakh crore in the current fiscal year, ac...