Prepared in Kartavya Bhawan, the budget centres on three fundamental duties: speeding up and maintaining economic expansion, enhancing the skills and dreams of citizens, and guaranteeing equitable entry to prospects consistent with the principle of Sabka Sath, Sabka Vikas.
Banking, NBFC Reforms and Tax Simplification
Bhutada highlighted the proposal to set up a High-Level Committee on Banking for Viksit Bharat as a timely move to evaluate the sector's readiness for future growth. He also drew attention to the restructuring of Power Finance Corporation and Rural Electrification Corporation as a strategic step to enhance scale, operational efficiency, and long-term infrastructure financing within public-sector NBFCs.
“As credit demand expands, aligning stability, inclusion and consumer protection will be critical for sustaining confidence in the financial system,” CA Abhay Bhutada said.
Regarding taxation, Bhutada noted that the new Income Tax Act, effective from April 2026, introduces simplified TDS and TCS provisions. He added that the extended timelines for return revisions could significantly reduce compliance burdens and disputes, improving the ease of doing business.
Support for MSMEs and Capital Access
Bhutada, a Chartered Accountant, stated that the creation of a ₹10,000 crore SME Growth Fund is a focused initiative to support the development of “Champion SMEs.” He explained that the fund will provide growth-stage risk capital based on specific performance criteria. He also highlighted the additional ₹2,000 crore allocation to the Self-Reliant India Fund, which reinforces continued access to risk capital for micro enterprises.
He mentioned that involving professional bodies like ICAI, ICSI, and ICMAI in developing short-term, practical programmes for “Corporate Mitras” could strengthen financial discipline and compliance readiness. He added that this initiative would also improve governance among small businesses, particularly in Tier II and Tier III towns.
Technology, Data Centres, and Global Investment
On the technology front, Abhay Bhutada said the budget sends a clear signal to position India as a global data and digital services hub. Tax holidays for foreign cloud service providers using Indian data centres, along with rationalised safe harbour norms and automated approvals for IT services, provide greater certainty for long-term investment and exports.
He concluded that Budget 2026-27 offers a coherent financial and technology framework, and that disciplined execution of regulatory and capital allocation reforms will be critical to achieving sustainable growth under the Viksit Bharat vision.
