Prof. Hansraj Suman

If the Budget 2026–27 is read merely as a mathematical document of income and expenditure, it would be an injustice to it. In reality, this budget is a signal of that ideological shift in which the Indian state wants to establish itself beyond being a welfare manager and as a strategic nation-builder. There is neither the noise of emotional announcements nor the haste for immediate political gratification. This budget clearly acknowledges that India’s next phase will be determined not by populism, but by structural power.

The central mantra of this budget is “Action over Ambivalence”. This means the government has now moved beyond the language of policy declarations and entered the language of implementation. Every major section of the budget—whether education, defence, financial discipline, or public capital expenditure—provides evidence that the priority is no longer spending, but capacity-building.

First, it is essential to understand the overall economic landscape. The Budget 2026–27 has been presented at a time when the global economy is passing through instability, geopolitical tensions, and restructuring of supply chains. In such times, by targeting nearly 7 percent growth rate, India has indicated that it is no longer a victim of global uncertainty but a nation seeking opportunities within it. Moderate inflation, controlled fiscal deficit, and emphasis on public investment—these three signals are hallmarks of a mature economic policy.

Fiscal discipline is the backbone of this budget. The fiscal deficit target of 4.3 percent for 2026–27 is not just a number, but a political-economic statement. Its direct meaning is that the government has accepted that uncontrolled spending ultimately harms social sectors, especially education and defence, the most in the long run. The target of bringing the debt-to-GDP ratio to around 50 percent by 2030 is proof that the government is prioritizing economic stability over emotional popularity.

Now, turning to the education budget, the biggest change here is visible in the perspective. Education has been treated not as a social obligation but as the foundation of national productivity. The concept of university townships is not merely a plan for building structures; it is an effort to integrate education, industry, and urban economy. Through this, knowledge is being connected geographically to industrial and logistic corridors so that it flows from research laboratories to production units. The arrangement of hostels for female students in STEM institutions in every district signals that the government now wants to transform gender equality from a slogan into infrastructure. It has been accepted that women’s education is not merely a subject of social reform but a direct means to improve the quality of the workforce. Thus, the education budget is now being viewed as human capital investment, not as unproductive expenditure.

Schemes like the Digital Knowledge Grid and telescope infrastructure underline the fact that India no longer wants to limit education to the graduate level. Investments in scientific research, astrophysics, and advanced technology show that the government envisions India as a knowledge-based superpower in the long term. This is the same thinking that gave the United States global leadership in the twentieth century—where universities and defence laboratories were part of the same ecosystem. Directly linked to education is the question of employment. The formation of the Education to Employment and Enterprise committee in the budget is an acknowledgment that India’s biggest problem is graduate unemployment. This budget breaks the illusion that merely increasing the number of educational institutions will create employment. Now the focus is on the relevance of education. Emphasis on skill development in service sector, health, design, sports, and AVGC (Animation, Visual Effects, Gaming, Comics) sectors indicates that the government has identified future employment.

Now, it is essential to look at the defence budget, because this is the area where this budget most clearly becomes a strategic document. An expenditure of nearly six lakh crore rupees on defence is not merely a signal of military preparedness but an extension of industrial policy. Aircraft manufacturing, customs duty exemptions on defence components, tax relief on raw materials for maintenance and overhaul—these steps establish defence as an industry, not just an expensive department. The most important aspect of the defence budget is that it has been linked to self-reliance. Reducing import dependence is not just a means to save foreign exchange but a question of strategic autonomy. When a nation depends on external powers for its defence needs, its foreign policy automatically becomes limited. This budget accepts this truth and considers defence production as the foundation of national sovereignty.

Expansion of research and domestic manufacturing in the defence sector also creates high-skill employment. Today, the defence industry is not limited to weapons; it includes AI, cyber security, space technology, and advanced materials science. In this sense, the defence budget becomes a natural extension of the education budget. Where universities generate knowledge, the defence industry transforms that knowledge into power. When education and defence are viewed together, it becomes clear that this budget lays the foundation of India’s intellectual-military complex. This is the same model historically called the Military-Industrial-Academic Complex—and which has turned many nations into global powers. The difference is that India is attempting to develop it within a democratic and inclusive framework.

Public capital expenditure is the third pillar of this budget. Infrastructure, rail corridors, waterways, energy security—these investments prepare the foundational environment for both education and defence. Without strong infrastructure, neither universities flourish nor defence production thrives. That is why public investment has been treated as a catalyst for development in this budget, not as a fiscal burden.

Ultimately, the Budget 2026–27 should be read with the conclusion that it is not a budget for poverty management, but for power-building It accepts that India is no longer fighting only the battle for survival but harbors the ambition for leadership. By giving equal importance to consciousness-building through education and sovereignty protection through defence, this budget takes India in a new historical direction. This budget has been written not for applause, but for history.

(The author is a Professor at Aurobindo College, Delhi University)