India's next Budget must balance fiscal discipline with growth push

The phasing out of the import of Russian oil might increase the cost of importing crude oil and escalate Budget expenditure

The budgetary process for 2026-27 began in October with the issuing of the circular relating to it and commencement of pre-Budget meetings. With volatility and uncertainty caused by disruptive effects of Trump tariffs and their impact in slowing the world economy and continued international conflicts in spite of the claims by the United States (US) President of having stopped eight wars in the background, the Budget will have to be formulated to deal with formidable challenges. It must continue fiscal consolidation to reduce the fiscal deficit to bring down the ratio of debt to gross domestic product (GDP)