As Budget Day nears, expectations is growing on what the SOPs and measures the Finance Minister may unveil for the consumers. Saurabh Mukherjea, founder and CIO of Marcellus Investment Managers has outlined what he believes could shape the government’s next big policy move—though he remains sceptical about how much of it will actually happen.
In a candid assessment, Mukherjea flagged five areas that could define the government’s fiscal and reform priorities, particularly for small and medium enterprises (SMEs) and taxpayers.
#1. Govt stays the course on fiscal consolidation
One of the questions that Budget observers and experts are posing is whether the Finance Minister will stay on course with fiscal consolidation.Mukherjea expects the government to continue on the fiscal consolidation track.
This suggests limited room for aggressive spending or large giveaways, as policymakers continue to balance growth with macroeconomic stability.
#2. Cut in income tax
The government is pushing for domestic consumption amid global uncertanities. In CY2025 government announcement major reform in income tax slab and GST rationalistion. Mukherjea expects a cut in income tax in this year’s Budget as well.
#3. Capex cuts may be on the table
Mukherjea also flagged the possibility of a reduction in capital expenditure (Capex). Capex push is crucial for different sectors and infrastructure boost for India.
#4. Corporate tax relief for SMEs
Another major expectation is a cut in corporate tax rates for Small and Medium Enterprises (SMEs).
In the previous Budget 2025, Finance Minister Nirmala Sitharaman stressed that MSMEs are the second growth engine of the economy, covering manufacturing and services. A new Fund of Funds with a government contribution of Rs 10,000 crore has been announced to deepen funding support for startups.
#5. Red tape rollback for SMEs
The most critical point in Mukherjea’s wishlist is regulatory reform. He expects the government to announce policy measures to pull back red tape for SMEs.
What it means for investors
While the government is expected to prioritise fiscal consolidation, a capex push is likely, and tax relief for consumers and SMEs is also on the wishlists of economists and taxpayers. Now, all eyes are on Budget 2026, scheduled for February 1. Which sector will get a boost this year? Watch out for the live coverage of the Budget on FinacialExpress.com for a detailed analysis and key highlights.