Budget 2026 signals trust over control; the most important reform is the comprehensive simplification and liberalisation of the Customs and tax administration
A man watches the budget announcement outside the Bombay Stock Exchange on Sunday. PIC/ASHISH RAJE
This Budget marks a quiet but decisive shift in the philosophy of economic governance — from control to confidence, from suspicion to trust, and from discretion to data. The most important reform, in my view, is the comprehensive simplification and liberalisation of the Customs and tax administration. When a nation chooses to trust its citizens, compliance rises naturally. Data-driven systems replacing discretionary prosecution will dramatically reduce litigation across customs, GST, and direct taxes. Importantly, both honest taxpayers and inadvertent defaulters are being spared the trauma of criminalisation — this is civilised governance in action.
Equally significant is the Budget’s precision in investment priorities. Support for MSMEs, semiconductors, advanced manufacturing, biologicals, rare-earth corridors, carbon capture and utilisation, and strategic clean-chemistry ecosystems reflects a clear understanding of where future value will be created. This is not industrial policy by slogans, but by carefully chosen capability stacks. I am particularly encouraged by the integration of science, humanities, engineering, arts, and mathematics in mission-oriented innovation.
This signals a recognition that deep technology breakthroughs require interdisciplinary thinking, not silos. On the macro front, the numbers matter. A lower fiscal deficit, a credible glide path for reducing debt-to-GDP, and a reduced need for incremental borrowing, supported by disinvestment proceeds, together restore fiscal headroom without sacrificing growth momentum. This enhances India’s sovereign credibility at a time when global capital is discerning and risk-averse. Taken together, this Budget reinforces India’s strategic posture in a fractured world: Atmanirbhar in critical capabilities, globally integrated by design, and governed through trust rather than fear. This is not a dramatic Budget. But it is a mature one — and maturity is exactly what this moment demands.
Shailesh Haribhakti is a Chartered Accountant, Independent Director and Author of Digital Professional, Audit Renaissance, ESG, AI Auditing and Sustainable Abundance, History of Mankind, India in 2050, The Pathway to an Advanced, Green, AI-Led India, Awake, AI First Internal Audit, and The Shailesh Haribhakti Way.
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