Budget 2026: Motilal Oswal sees 15% hike in defence spend and RBI dividend windfall

Motilal Oswal predicts that the upcoming FY27 Budget will prioritize capital expenditure, with a 10.3% increase to Rs 12.4 trillion. The defence sector and labour-intensive industries affected by trade tariffs are likely to receive higher allocations. The Government is expected to meet its FY26 fiscal deficit target of 4.4% of GDP, despite slightly higher spending.