Synopsis
This is the number in the Union Budget that the market does not often focus on, but one which influences fiscal outcomes, inflation outcomes, and, therefore, market discount rates. For investors, it is important to remember that this number reveals “policy risk” much before it shows up later through the Revised Estimates, supplementary demands, or re-prioritisation within the revenue account.
In the run-up to Budget 2026, we will every day take up and explain one word/term that is used in the budget. It will help you as investors to better understand the document that is the primary instrument through which the government’s fiscal policy is articulated and implemented. This is important, as the decisions announced in the budget impact every part of the economy, including the stock market. Our word/term for the day is: Subsidies. It
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