New Delhi, Jan. 25 -- The union Budget 2026 is expected to prioritise higher public investment, ease of doing business and gradual fiscal consolidation, supported by a more buoyant revenue outlook, according to a budget preview by ICICI Bank Research.
The report notes that FY26 growth was aided by both fiscal and monetary stimulus, including income tax relief and GST rationalisation amounting to nearly 0.9 per cent of GDP. While this supported domestic demand, it also led to muted tax collections, making expenditure rationalisation inevitable to meet the FY26 fiscal deficit target of 4.4 per cent of GDP.
Looking ahead, revenue collections in FY27 are projected to improve on the back of a low base, higher nominal GDP growth of around 10 pe...