Budget 2026: Finance Minister Nirmala Sitharaman unveiled Modi 3.0’s Budget 2026 on Sunday, Feb. 1 with India Inc calling it a ‘non-event’ afetr no major announcements were made for income tax slabs or sector-specific allocations. According to Neelkanth Mishra, Chief Economist and Head-Global Research of Axis Bank, some of the macroeconomic and fiscal projections made in Budget 206-27 could pose a challenge for the government to tackle the financial system going further.
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Axis Bank’s Neelkanth Mishra On Budget 2026
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Fiscal Projections In Budget 2026
”As a result of that, the gross borrwoing target has turned out to be higher than what bond markets expected and yields have actually gone up when they should have been going down,” he added. Explaining the fiscal math, Mishra said it is a two step process. ”I don’t see a challenge with fiscal math, by assuming 10% nominal GDP growth, even 10-and-a-half is possible. An improvement is likely in the coming year as the government has adequate buffer. Even if there is a signficant slowdown in global economy or if a war pushes up global crude oil prices, some buffers exist in the fiscal math itself,” he added.
