New Delhi, Jan 31: As Finance Minister Nirmala Sitharaman prepares to present the Union Budget for 2026-27 on February 1, experts indicate that this year's budget will prioritize defence, infrastructure, capital expenditure, power, and the expansion of affordable housing, while also ensuring a balance between social welfare and fiscal responsibility.

Policymakers are expected to navigate growth objectives alongside fiscal discipline in light of increased global uncertainties.

The upcoming budget aims to maintain growth momentum while ensuring fiscal consolidation.

Economists highlight the need to tackle immediate challenges arising from significant geopolitical changes.

The government has remained committed to fiscal consolidation, with the fiscal deficit projected to decrease from a pandemic-induced high of 9.2% to an estimated 4.4% for FY26.

Experts believe that the government will uphold its commitment to fiscal discipline and do not anticipate significant deviations from this trajectory.

FM Sitharaman will unveil the 15th budget under PM Modi's administration on February 1, marking her ninth consecutive presentation as the first female finance minister in the country.

While the FY26 budget focused on boosting middle-class consumption through tax relief, the FY27 budget is expected to adopt a more selective approach to stimulate consumption.

According to Motilal Oswal Financial Services Ltd's 'India Strategy' report, the budget is likely to emphasize capital expenditure in sectors considered strategically vital due to current geopolitical pressures.

Investors will be closely monitoring debt metrics, deficit outcomes, and planned borrowings for the upcoming budget to align with strategic goals, as noted by DBS Bank.

Additionally, the 'Economic Survey 2025-26' provided a thorough evaluation of the economy, forecasting FY27 growth between 6.8% and 7.2%, slightly lower than the 7.4% projected for the current year.

Interestingly, India's stock exchanges will conduct a live trading session on the Union Budget 2026-27 on February 1, despite it being a Sunday.