Budget 2025–26 was presented against the backdrop of an economic scenario characterised by rising unemployment and slowing economic growth. This note assesses the priorities set out in the budget to tackle these challenges. We analyse budgetary allocations made towards these priorities in terms of their ratios to GDP. Our summary assessment is that the evidence is mixed. Some priorities— agriculture, rural development—show a decline while others—investing in people, boosting employment—show improvement. We also discuss the government’s priority of boosting capital expenditures for driving growth and the priorities as reflected in expenditure on major centrally sponsored schemes.
Karnik et al. (2025) studied this question.