New Delhi, Jan. 27 -- The union Budget for 2026-27 is likely to be framed against heightened global uncertainty, volatile financial markets, and rising commodity prices, even as India remains a relative "island of stability," according to a pre-Budget report by SBI Research.
In its "Prelude to union Budget 2026-27", SBI Research projects India's fiscal deficit at around 4.2 percent of GDP in FY27, supported by nominal GDP growth of 10.5-11 percent, despite potential inflationary pressures from global commodities.
The report cautions that a slower nominal growth could weigh on tax revenues, necessitating tighter expenditure planning, although GST rationalisation and personal income tax measures could offer some cushion.
Net central govern...