Finance Minister Nirmala Sitharaman recently presented the Union Budget for 2026-27. CA Abhay Bhutada, an entrepreneur and the Chairman of the Abhay Bhutada Foundation, shared his thoughts on its key focus areas.
The budget is built around three main goals: driving economic growth, enhancing people’s capabilities, and ensuring everyone has access to opportunities under the vision of “Sabka Sath, Sabka Vikas.”
### Banking and Tax Reforms
Bhutada praised the plan to establish a High-Level Committee on Banking for Viksit Bharat. This committee aims to assess the banking sector’s readiness for future growth. He also mentioned restructuring public sector NBFCs like the Power Finance Corporation to boost efficiency and infrastructure financing.
“As credit demand rises, aligning stability, inclusion, and consumer protection is vital for maintaining trust in our financial system,” Bhutada said.
On the tax front, the introduction of a new Income Tax Act in April 2026 could lessen compliance challenges. With simplified TDS and TCS provisions, along with more time for return revisions, the new act aims to improve the ease of doing business.
### Support for Small and Medium Enterprises (SMEs)
Bhutada highlighted the launch of a ₹10,000 crore SME Growth Fund, designed to support high-potential small businesses with growth-stage capital. An additional ₹2,000 crore is allocated to the Self-Reliant India Fund, providing crucial support for micro enterprises.
He emphasized the role of professional bodies like ICAI, ICSI, and ICMAI in creating practical programs for “Corporate Mitras” in smaller towns. This initiative could enhance financial discipline and compliance among small businesses.
### Tech Investments
On the technology front, Bhutada sees the budget as a step toward establishing India as a global hub for data and digital services. Tax breaks for foreign cloud providers using Indian data centers, along with smoother approval processes for IT services, could attract long-term investments.
Bhutada concluded that the 2026-27 Budget presents a solid plan for financial and technological progress. Effective implementation of these reforms will be crucial for achieving sustainable growth under the Viksit Bharat vision.
### Broader Implications
This budget comes at a time when India’s economy is rebounding after the disruptions caused by the pandemic. Recent statistics show a surge in digital adoption in remote areas, suggesting that initiatives like this could further bridge the gap. A survey from the Ministry of Electronics and Information Technology revealed that India ranks among the top five countries in digital services usage, supporting the budget’s push for tech integration.
In summary, the Union Budget aims not just to stimulate growth but to create a more inclusive and sustainable economic environment for everyone.
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