New Delhi, Feb. 2 -- Despite tighter fiscal headroom, the government has largely stayed the course on public spending, leaning on targeted interventions rather than across-the-board expansion.

The Budget prioritises capital expenditure, manufacturing, healthcare and MSMEs, while pushing a larger share of investment responsibility to states and betting on reforms and asset sales to support growth.

Here's a closer look at Budget 2026's choices, trade-offs and growth priorities.

Despite the fiscal constraints, the thrust on public spending remains. The Budget allocated Rs.12.2 trillion ( Rs.11.2 trillion in FY26) for capex, which, at 3.1% of the gross domestic product (GDP), is the same as last two years. Its hesitance to raise allocation...