Budget 2026-27 ... more allocations to states where assembly elections are held

Union Finance Minister Nirmala Sitharaman is set to present the Union Budget for the financial year 2026–27 with a renewed and innovative approach. This will be her ninth consecutive budget, marking a significant milestone. The upcoming budget is expected to reflect the recommendations of the 16th Finance Commission, along with steps towards merging several centrally sponsored schemes. Higher allocations are likely for flagship programmes such as GRAM G, while investment promotion, domestic manufacturing, employment generation, and sustained economic growth are expected to remain key priorities. There is widespread interest in whether any changes will be announced in tax rates.

Large allocations are anticipated for infrastructure sectors, including railways. The Centre is also likely to enhance funding for the zero interest loan scheme for states. With elections approaching in Tamil Nadu, Kerala, Assam, and West Bengal, these states may receive special attention. The Union Budget has raised expectations in both Telugu states as well. Andhra Pradesh is hopeful of allocations for Amaravati, Polavaram, industrial zones, and water projects under the Purvodaya scheme, while Telangana is looking forward to support for Metro Phase II expansion, the Musi river rejuvenation project, the Regional Ring Road, and the establishment of an IIT in Hyderabad.