New Delhi, Jan. 15 -- Against the backdrop of rising geopolitical risks, US tariffs, and a weakening rupee, Finance Minister Nirmala Sitharaman will present the Union Budget for the next financial year (FY27) on February 1.

The government is expected to maintain its focus on fiscal consolidation, as India's medium-term fiscal strategy remains anchored on narrowing the deficit and bringing central government debt towards 50% of gross domestic product (GDP) by FY31.

Fiscal consolidation has been a consistent trend since 2014. At the same time, the government has steadily increased capital expenditure as a percentage of overall spending.

However, apprehensions have risen that the government's focus on fiscal consolidation may translate in...