At the pre-Budget consultations held on Monday, leading Indian economists advised Finance Minister Nirmala Sitharaman to continue strong capital expenditure (capex) in the upcoming Union Budget 2026–27. They argued that higher public investment is vital for growth, even if it slows fiscal consolidation amid global uncertainties.

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• Economists urged the Finance Minister to sustain high capital expenditure despite fiscal deficit pressures.
• Meeting held under FM Nirmala Sitharaman’s leadership as part of Budget 2026–27 consultations.
•  Experts present included Sajid Chinoy, Neelkanth Mishra, Indira Rajaraman, Dharmakirti Joshi, Sonal Varma, Ridham Desai, C. Veeramani, and Lekha Chakraborty.
• Government’s capex target for FY26 stands at ₹11.21 trillion, or 3.1% of GDP, up 10.1% from FY25.
•  Capex rose 40% year-on-year in the first half of the current fiscal to ₹5.8 trillion.
• Economists highlighted rising state debt and urged measures to curb unsustainable borrowing.
• Agriculture sector experts sought more funding for research and education to face climate challenges.
•  Suggestions included boosting pulses and oilseeds output, revising import duty policy to support MSP.
•  Experts proposed revamping crop insurance (PMFBY) — Centre to bear 90% of premium to improve farmer satisfaction.
•  Call made to restructure fertiliser subsidy, with 25% urea price hike for rationalisation.