India Budget 2026: FM Nirmala Sitharaman Hits Fiscal Deficit Target, Misses Key Development Goals

The Centre met its deficit promise not through revenue strength, but by cutting transfers and development spend, shifting stress to states.

A massive shortfall of Rs 1.63 lakh crore in the Centre's net tax revenue is sought to be covered through a big squeeze on the transfers promised to the states for creation of assets, including spending for programmes like MGNREGA.

Sectorally speaking, big cuts are seen in spending on urban development, rural programmes, science and research, social welfare and social infrastructure such as education, in moves that undermine future economic growth prospects. Rajesh Mahapatra explains the numbers and the narrative thereof.