ICRA expects focus on capex, debt consolidation in Union Budget

ICRA expects the Union Budget 2026-27 to focus on medium-term debt consolidation while boosting capital expenditure by 14% to ₹13.1 trillion. Fiscal deficit is projected at 4.3% of GDP, with revenue growth led by direct taxes. Increased capex aims to support investment, while borrowing rises to ₹16.9 trillion amid higher debt repayments and fiscal commitments.