Budget 2026-27 sticks to fiscal discipline and pushes reforms for long term competitiveness

Markets flinch at one tax, then see reform momentum

Union Budget 2026-27 aims for fiscal prudence while preserving growth, with deficit consolidation continuing and capital expenditure sustained. Although markets reacted cautiously to the STT increase, the government also signaled broader market reforms, including buyback easing, PIS liberalisation, bond-market development, and targeted support for sunrise sectors to strengthen long-term competitiveness.