{"id":63008,"date":"2026-01-08T11:20:56","date_gmt":"2026-01-08T05:50:56","guid":{"rendered":"https:\/\/ozinews.in\/english\/?p=63008"},"modified":"2026-01-08T11:20:56","modified_gmt":"2026-01-08T05:50:56","slug":"budget-2026-defence-and-infrastructure-spending-likely-to-test-fiscal-discipline","status":"publish","type":"post","link":"https:\/\/ozinews.in\/english\/budget-2026-defence-and-infrastructure-spending-likely-to-test-fiscal-discipline\/","title":{"rendered":"Budget 2026: Defence and Infrastructure Spending Likely to Test Fiscal Discipline"},"content":{"rendered":"<p><strong>JANUARY 8 , 2026 (Ozi News Desk) : <\/strong>India\u2019s Union Budget for FY2026\u201327 is expected to increase defence and capital expenditure as the government balances fiscal discipline with rising domestic and external pressures. While the Centre may aim for a 4.3% fiscal deficit, the actual gap could widen to around 4.6% due to higher spending on infrastructure, railways, research and development, and security needs.<\/p>\n<p><strong>READ MORE :<a href=\"https:\/\/ozinews.in\/english\/us-seizes-russian-flagged-oil-tanker-in-north-atlantic-over-sanctions-violations\/\"> https:\/\/ozinews.in\/english\/us-seizes-russian-flagged-oil-tanker-in-north-atlantic-over-sanctions-violations\/<\/a><\/strong><\/p>\n<p>Growing geopolitical challenges, especially tensions with China and Pakistan, are likely to push defence allocations higher, even as defence spending has remained largely stagnant in recent years. At the same time, the government remains committed to reducing the debt-to-GDP ratio, which rose sharply during the COVID-19 period and is still above long-term targets.<\/p>\n<p><strong>READ MORE : <a href=\"https:\/\/ozinews.in\/english\/us-demanding-venezuela-cut-ties-with-russia-and-china-abc\/\">https:\/\/ozinews.in\/english\/us-demanding-venezuela-cut-ties-with-russia-and-china-abc\/<\/a><\/strong><\/p>\n<p>Large planned investments \u2014 including a multi-year R&amp;D fund and substantial railway spending \u2014 could further add pressure on public finances. Revenue generation may also face challenges due to tax reforms and customs duty rationalisation, potentially limiting the government\u2019s ability to offset higher expenditure.<\/p>\n<p>Overall, while fiscal consolidation remains a priority, increased spending needs may make it difficult to keep the deficit within targets.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>JANUARY 8 , 2026 (Ozi News Desk) : India\u2019s Union Budget for FY2026\u201327 is expected to increase defence and capital expenditure as the government balances fiscal discipline with rising domestic and external pressures. While the Centre may aim for a 4.3% fiscal deficit, the actual gap could widen to around 4.6% due to higher spending 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