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India Unveils FY27 Budget With Capex Boost, Fiscal Glide Path and Higher Trading Taxes

Investors now assess execution risks alongside higher transaction taxes.

Overview

  • Public capital expenditure is set at Rs 12.2 lakh crore for FY27 to extend infrastructure-led growth.
  • The fiscal deficit target is pegged at about 4.3% of GDP as the government reiterates its consolidation path.
  • Securities Transaction Tax rises to 0.05% on futures and 0.15% on options, and equities fell in initial trading.
  • Strategic industry measures include India Semiconductor Mission 2.0 with a Rs 40,000 crore outlay and rare‑earth corridors in Odisha, Kerala, Andhra Pradesh and Tamil Nadu.
  • Defence outlay increases with significant provisions for modernisation and pensions, and transport plans add seven proposed high‑speed rail corridors linking key city pairs.