Budget 2026-27: Fiscal Discipline Firm as STT, Market Borrowing Jolt Markets
Budget 2026
F
Forbes India•01-02-2026, 15:50
Budget 2026-27: Fiscal Discipline Firm as STT, Market Borrowing Jolt Markets
- •Finance Minister Nirmala Sitharaman presented the Budget 2026-27, maintaining fiscal consolidation while shifting focus to the debt-to-GDP ratio.
- •The budget aimed to attract foreign flows, promote new-age sectors like data centers, cloud services, and established manufacturing.
- •Increased Securities Transaction Tax (STT) and government market borrowing plans caused significant market volatility, with India VIX surging over 17%.
- •India targets a debt-to-GDP ratio of 50% by FY31, down from an estimated 55.6% in FY27, to boost credit ratings and foreign investment.
- •Key initiatives include extending the Rare Earth Permanent Magnets Scheme to mineral-rich states and expanding the India Semiconductor Mission (ISM 2.0).
Why It Matters: Budget 2026-27 balances growth ambitions with fiscal discipline, but STT hike and borrowing plans rattled markets.
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