Budget 2026 Plays Safe Amid Global Storms: Capex Push, No Tax Shock, Defence Boost

Prepared amid mounting global headwinds triggered by Donald Trump’s tariff war, Finance Minister Nirmala Sitharaman’s ninth consecutive budget chose stability over spectacle. Steering clear of big-bang reforms, the focus was on firewalling the economy through higher public spending as private investment remains sluggish. Public capex was raised to ₹12.2 lakh crore, alongside targeted support for SMEs, electronics manufacturing, textiles, and data centres. Income tax rates stayed unchanged, though compliance was eased. Rural employment, defence spending, and infrastructure saw significant allocations. With geopolitics looming large and no major poll-state sops, the budget reflects a cautious, grind-it-out strategy in uncertain times.