Best of BS Opinion: Budget's fiscal reset and the real cost of AI expansion

Here are the best of Business Standard's opinion pieces for today

The Union Budget this year has reset how fiscal progress is judged. Instead of focusing only on the annual deficit, it anchors credibility to a declining debt-to-GDP path. Our first editorial highlights that debt is projected to fall to 55.6 per cent of GDP in 2026-27, with the deficit narrowing further. That marks real progress since FY21. Still, the longer-term target of 50 per cent by FY31 leaves little room for error. Future Pay Commission costs, elections, and state-level debt mean sustained discipline and medium-term planning will matter more than headline targets.  A separate shift is visible in the way technology companies are securing electricity, as seen in Google’s $4.75 billion purchase of Intersect Power, notes our second editorial. The deal shows that for AI-driven data centres, reliable power has become as critical as computing hardware. By owning generation assets, Google gains direct control over supply as it tries to meet its 2030 carbon-free energy pledge. For India, where data-centre demand is rising quickly, transmission planning, discom finances and rules on storage and demand response will need urgent clarity.  Digital payments have brought speed but also organised crime, writes Swaminathan J, noting that most losses now stem from users being tricked into authorising transfers themselves. Banks are shifting focus to the first hour after a suspicious transaction, using smarter authentication and tighter checks on mule accounts that enable rapid cash-outs. Awareness alone is inadequate against professional scams, and clearer liability norms and stronger identity signals are becoming central to defence. The simplest protection remains to slow every unexpected request and verify it independently.  Meanwhile, Rajani Sinha assesses the Centre’s fiscal position as consolidation slows but remains on track with the deficit falling to 4.4 per cent in FY26 and budgeted at 4.3 per cent in FY27. Lower deficits, rising public capex, and manageable assumptions support the FY27 maths, though execution risks persist. High interest burdens, state-level spending pressures, and upcoming bond redemptions are key concerns. The message is steady, she writes, and so fiscal prudence must continue across governments to keep debt moving down.  Finally, Ambi Parameswaran reviews RARE – Investing the Rakesh Jhunjhunwala Way by Nandini Vijayaraghavan, a careful study of disciplined investing rather than a handbook for quick gains. The book revisits Dalal Street’s turbulent decades, contrasts RJ’s approach with the excesses of earlier booms, and analyses his major public bets, such as Titan, along with private successes like Star Health and Nazara. By tracing his methods, temperament and later encounters with regulators, Parameswaran argues that the book serves serious students of markets while offering little comfort to anyone hunting for instant profit.  Stay tuned!