New Delhi, August 27: The Finance Ministry will officially begin preparations for Budget 2026-27 from October 9, 2025, according to a circular issued by the Department of Economic Affairs. The pre-budget exercise is expected to prioritize job creation, boosting domestic demand, and pushing economic growth beyond 8 percent, even as India navigates global headwinds, including the 50% US tariff on Indian exports.
Pre-Budget Meetings to Begin October 9
The circular noted that pre-budget meetings chaired by the Secretary (Expenditure) will commence from October 9, 2025. Ministries and departments have been instructed to submit detailed expenditure requirements by October 3, 2025, including reports of autonomous bodies and implementing agencies.
The Revised Estimates (RE) discussions for 2025-26 will continue until mid-November, after which final Budget Estimates (BE) for 2026-27 will be finalized.
Growth, Jobs, and Demand in Focus
The Modi government’s economic agenda for the upcoming budget revolves around ensuring strong growth momentum. Officials said the central target will be a real GDP growth rate of over 8 percent, while continuing to address employment generation and strengthening domestic demand.
For the current fiscal year (2025-26), the Indian economy is projected to grow between 6.3% and 6.8%, while the nominal GDP growth has been pegged at 10.1% in the ongoing budget.
US Tariffs Add Pressure on Indian Economy
A major challenge for Budget 2026-27 will be the impact of the steep 50% US tariff on Indian goods, which could affect export competitiveness and trade flows. With rising geopolitical uncertainties, the government is expected to introduce measures to shield domestic industries and boost manufacturing and services growth under the Make in India framework.
Fiscal Deficit and Revenue Targets
The government aims to maintain fiscal discipline while balancing growth priorities. The fiscal deficit for the current year is estimated at 4.4% of GDP, and efforts will continue to bring it down in a calibrated manner. Revenue mobilization through GST efficiency, digital tax compliance, and higher capital expenditure allocations will be central to the budget exercise.
Budget 2026-27 Presentation Likely on February 1
Continuing the practice introduced in 2017 by late Finance Minister Arun Jaitley, the Union Budget for 2026-27 will be presented on February 1, 2026, during the first half of Parliament’s budget session.
The decision to advance the budget presentation from the colonial-era last week of February to February 1 has allowed ministries to access funds earlier in the financial year, enabling faster rollout of government schemes and giving businesses more time to plan their taxation and investment strategies.
Key Takeaways
Budget preparation starts October 9, 2025
Focus: Growth above 8%, job creation, and demand revival
US tariffs on Indian exports pose a major challenge
Fiscal deficit target: 4.4% of GDP for current year
Budget presentation: February 1, 2026
