Shagun Parihar
writetomlakishtwar@gmail.com
Instead of looking for dramatic headlines, the Union Budget 2026-2027 should be interpreted as a declaration of strategic intent. The Budget reflects a governance approach that prioritizes continuity, capacity-building, and long-term results in a time of global economic uncertainty, climate pressures, and rapid technological change. It upholds the idea that long-term national advancement results from consistent investment in the individuals, organizations, and systems that influence daily life rather than depending on populist short cuts. It is more important to strengthen the foundations that will define India’s growth trajectory in the coming decades.
Education stands out as one of the clearest expressions of this long-term thinking. The budget represents a significant and intentional policy push in the direction of enhancing educational infrastructure, bolstering institutions, increasing skill development, and fostering innovation and research. Today, education is a major economic engine rather than only a social sector issue. In a knowledge-driven global economy, productivity, innovation, and competitiveness are determined by a workforce that is both skilled and flexible. By placing a high priority on education, the Budget acknowledges that human capital is the most precious and durable type of national infrastructure, crucial for social stability, democratic resilience, and economic progress.
Equally important is the renewed focus on housing and drinking water, two sectors that directly shape the quality of life and dignity of citizens. The Budget marks a significantly higher allocation compared to the previous Budget cycle for both housing and water-related interventions, reflecting a clear policy choice rather than incremental adjustment. Secure housing provides families with stability, safety, and a sense of permanence, enabling them to participate more confidently in economic and social life. It also supports labour mobility and local employment, creating multiplier effects across the economy. Housing, in this sense, is not merely about shelter but about empowerment.
Access to clean drinking water remains one of the most transformative public investments. Reliable water supply has immediate and measurable effects on health outcomes, productivity, and household well-being. It reduces the daily burden on women, improves child health, and strengthens rural and semi-urban economies. The decision to scale up investment in this sector compared to the previous year reflects an understanding that development cannot be sustained unless basic services are assured. Water security is not a peripheral concern; it is central to public health, social equity, and economic participation.
What gives coherence to these priorities is the way the Budget integrates social development with economic strategy. Education, housing, and water are treated not as isolated welfare measures but as interconnected foundations of growth. When households have access to basic services, they are better positioned to invest in education, participate in the workforce, and respond to economic opportunities. Poverty reduction, in this framework, is achieved through capability-building rather than temporary relief. It reflects a shift from managing deprivation to enabling aspiration.
A defining feature of the Budget is its strong emphasis on environmental responsibility and green growth. The government’s approach recognises that climate change is no longer a distant environmental issue but an immediate economic challenge. Investments in renewable energy, clean infrastructure, sustainable urban development, and energy efficiency signal a decisive move towards climate-conscious planning. This approach treats sustainability not as a constraint on growth but as a pathway to future competitiveness.
The Budget’s focus on emerging carbon markets and carbon trading technologies is particularly noteworthy. Carbon trading introduces market-based incentives for emissions reduction, encouraging innovation rather than compliance alone. By leveraging technology for measurement, reporting, and verification of emissions, carbon markets create transparency and credibility. This allows Indian industries to participate in global value chains that are increasingly shaped by sustainability standards. Carbon trading and climate finance thus become tools for economic transformation, attracting investment while aligning growth with environmental responsibility.
Green growth also has a direct employment and industrial dimension. Renewable energy, clean mobility, energy-efficient construction, and climate-resilient infrastructure are sectors with strong job-creation potential. By integrating environmental objectives into mainstream economic planning, the Budget avoids the false binary between growth and sustainability. Instead, it advances a model where economic expansion and ecological responsibility reinforce each other.
Capital expenditure continues to play a stabilizing role in this strategy. Infrastructure investment enhances productivity, strengthens supply chains, and supports private investment. While financial markets may respond to the Budget with short-term fluctuations, long-term confidence depends on policy consistency, fiscal discipline, and clarity of direction. In this regard, the Budget reassures the middle class by balancing developmental ambition with responsible economic management.
Notably, the Budget avoids the temptation of populism. It focuses on steady delivery, institutional strengthening, and future readiness rather than quick fixes. The idea of Viksit Bharat finds expression here not as a slogan but as a policy framework that links human development, environmental responsibility, and economic resilience. Taken together, the Union Budget 2026-27 presents a thoughtful and forward-looking roadmap, reinforcing the belief that when governance prioritizes fundamentals and plans for the future, development becomes both inclusive and sustainable.
(The writer is MLA from Kishtwar Constituency J&K Legislative Assembly)
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