CA Abhay Bhutada on Budget 2026-27 and India’s Growth Priorities

The Union Budget 2026-27, presented by Finance Minister Nirmala Sitharaman, sets a clear direction for India’s economic future by focusing on growth, institutional strength, and broader access to opportunities. Prepared in Kartavya Bhawan, the budget is built around three core priorities: accelerating economic progress, building the capacity and aspirations of citizens, and ensuring inclusive development aligned with the vision of Sabka Sath, Sabka Vikas. In his perspective on the Union Budget 2026-27, CA Abhay Bhutada, Entrepreneur, Philanthropist, and Chairman of the Abhay Bhutada Foundation and TAB Global Ventures, highlighted that the announcements reflect a practical effort to balance financial reform, compliance simplification, and long-term economic development.

Financial Sector Reforms and Institutional Strength

TL;DR: A major theme of this year’s budget is reinforcing financial institutions to support increasing credit demand. CA Abhay Bhutada noted that the proposed High-Level Committee on Banking for Viksit Bharat could play an important role in assessing the readiness of the banking sector for the next phase of economic expansion.

According to CA Abhay Bhutada, strengthening governance frameworks while encouraging financial inclusion will be essential as lending activity grows across sectors. Maintaining trust within the financial ecosystem requires a careful balance between growth and risk management.

The restructuring of public sector non-banking finance companies, such as Power Finance Corporation and Rural Electrification Corporation, was also highlighted by CA Abhay Bhutada as a step towards improving efficiency and enabling stronger long-term infrastructure financing. Infrastructure development depends on stable capital flows, and institutional reforms may help improve funding continuity for large projects.

Tax Reforms and Easier Compliance

Tax simplification forms another key pillar of Budget 2026-27. The new Income Tax Act, expected to come into effect from April 2026, aims to simplify compliance and reduce administrative complexity for taxpayers.

CA Abhay Bhutada pointed out that streamlined TDS and TCS provisions, along with extended timelines for revising returns, could reduce disputes and ease the compliance burden for businesses. Many enterprises, especially smaller ones, spend considerable time navigating tax procedures, and simplified systems may allow them to focus more on operations and growth.

Clear and predictable tax rules also support better planning and encourage investment decisions. CA Abhay Bhutada emphasised that reducing friction in compliance processes could strengthen participation in the formal economy and improve overall efficiency.

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Support for MSMEs and Access to Capital

The budget continues to place strong emphasis on supporting micro, small and medium enterprises. The announcement of an INR 10,000 crore SME Growth Fund aims to provide structured funding for businesses ready to scale.

CA Abhay Bhutada described this initiative as an effort to nurture “Champion SMEs” by linking funding to performance benchmarks, encouraging accountability while enabling expansion. Access to growth capital remains a significant challenge for many businesses, and targeted programmes can help bridge that gap.

Additionally, the extra INR 2,000 crore allocation to the Self-Reliant India Fund strengthens continued support for micro enterprises. CA Abhay Bhutada noted that businesses in Tier II and Tier III cities often face greater challenges in accessing capital, making such initiatives particularly relevant.

Another notable step is the involvement of professional institutions such as ICAI, ICSI and ICMAI in developing short-term programmes for “Corporate Mitras”. These initiatives aim to improve governance standards, financial discipline, and compliance readiness among smaller businesses. CA Abhay Bhutada highlighted that practical training programmes could help entrepreneurs navigate regulatory requirements more confidently.

Technology and Digital Infrastructure

Technology-driven growth remains a central theme of Budget 2026-27. Tax incentives for foreign cloud service providers operating through Indian data centres aim to encourage investment while strengthening domestic digital infrastructure.

Revised safe harbour norms and automated approvals for IT services are expected to reduce delays and provide clarity for companies planning long-term investments. CA Abhay Bhutada observed that these measures could help strengthen India’s position in global digital services and create new opportunities for innovation-led sectors.

As digital adoption continues across industries, investments in infrastructure and supportive policy frameworks will remain important for sustained progress.

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Conclusion

Budget 2026-27 reflects a structured effort to combine financial reform, tax simplification, MSME support and technology-led growth. The broader goals highlighted by CA Abhay Bhutada and aligned with the work of the Abhay Bhutada Foundation emphasise inclusive growth and long-term economic stability. If implemented consistently, the measures announced in this budget have the potential to strengthen confidence among businesses and contribute to steady economic progress. You can click here to know more about the Abhay Bhutada Foundation.

FAQs

1. Who is CA Abhay Bhutada?

CA Abhay Bhutada is an entrepreneur, philanthropist, Chartered Accountant, and Chairman of the Abhay Bhutada Foundation and TAB Global Ventures.

2. What Sectors Does CA Abhay Bhutada Actively Speak About and Contribute to?

CA Abhay Bhutada shares insights on financial sector reforms, economic policy, entrepreneurship, and technology-driven growth.

3. What is the Role of the Abhay Bhutada Foundation?

The Abhay Bhutada Foundation works towards inclusive growth, social impact initiatives, and supporting sustainable economic development.