Budget FY27: Investment for Growth, Fiscal Deficit Target Reflects Priority: FM Sitharaman
India
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CNBC TV18•02-02-2026, 17:30
Budget FY27: Investment for Growth, Fiscal Deficit Target Reflects Priority: FM Sitharaman
- •Finance Minister Nirmala Sitharaman stated the FY27 Union Budget prioritizes investment to boost consumption and growth, with the fiscal deficit trajectory reflecting this focus.
- •Sitharaman attributed gold price volatility to global uncertainty and investor lack of confidence in single currencies, leading to increased gold investments by central banks.
- •The hike in Securities Transaction Tax (STT) on F&O trades is a deterrence against speculative derivative trading, following concerns about retail investor losses.
- •The Budget proposes increasing STT on futures contracts to 0.05% and on options premium/exercise to 0.15% to curb excessive speculation.
- •The fiscal deficit is pegged at 4.3% of GDP for FY27, down from 4.4% for FY26, aligning with the government's growth priority and fiscal consolidation path.
Why It Matters: The FY27 Budget emphasizes investment for growth, uses STT to curb speculation, and maintains fiscal consolidation.
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