Union Budget 2026: Cuts in public allocation to protect the interests of the rich, inequality will increase: A scientific analysis of the budget.

The budget has only served the narrow interests of a few corporate and wealthy individuals, placing the burden on the shoulders of the working class and the poor. The broader interests of the national economy have also been ignored.

According to the scientific analysis,the 2026 Union Budget is completely anti-people and against the federal structure.

According to the scientific analysis, the Union Finance Minister calls fiscal discipline is actually the corporate sector and the rich exploiting the people by giving tax breaks. The Politburo said that the collection of income tax and GST in the current fiscal year 2025-26 is lower than the budget estimate. The shortfall has been met by increasing revenue from import duties. The burden of this has mainly fallen on petroleum oil.

It has been analysed that the Finance Minister is not talking loudly about the government revenue crisis. But the reality is that almost the same amount of revenue that the government will get in the current fiscal year has been budgeted for the next fiscal year 2026-27. As a result, government revenue will decrease as a share of national income.

Nirmala Sitharaman has cut the allocation for workers, farmers and the common people to reduce the fiscal deficit. As always, corporates have received exemptions. Allocations for workers and farmers have been openly cut. The expenditure on central and centrally assisted schemes like Rashtriya Krishi Vikas Yojana, PM Poshan, PM-Shri, PM-Jai, PM-MSY, Crop Insurance has been reduced. Allocations have been reduced for Scheduled Castes, Tribals and the North-East. 
Not only that, expenditure on projects like agriculture and allied works or rural development, education, health and social welfare has been cut.

The budget allocation for gender equality has been reduced by Tk 51,144 crore. The budget aims to cut subsidies on fertilizer, food and petroleum in the next fiscal year.

According to the scientific analysis,the government is making a lot of hype about capital expenditure. But the Finance Minister estimates that the government's capital expenditure will be less than the budget allocation in the current fiscal year. On the other hand, capital expenditure by state-owned enterprises has been lower in the 2025-26 financial year compared to 2024-25. It has also been estimated to be lower for the upcoming 2026-27 financial year.

According to the scientific analysis, the Modi government's attitude is to block the efforts of state governments to fulfill the aspirations of the people. Expenditure on centrally-funded projects, Finance Commission grants and other financial transfers has been reduced by Tk 2,38,011 crore compared to the budget estimate. The budget for the upcoming fiscal year 2026-27 has announced a target of allocating Tk 59,456 crore less than the actual expenditure for the current fiscal year. The states are already in dire straits due to the shortfall in GST collection. On top of that, the 'VB Ji Ram Ji' Act has imposed a partial burden of expenditure on the states.

According to the scientific analysis, the Finance Minister in his budget speech said that the Modi government's tenure has ensured stability, fiscal discipline and low inflation. What he did not say was that the only crisis that has become permanent is the plight of the working class. Modi's tenure has been marked by rampant unemployment, with the working class earning meager wages. On the other hand, there has been a steady increase in wealth among the rich and corporate sectors. This budget will further exacerbate the stark inequality.

According to the scientific analysis, the budget also has serious shortcomings in setting policies taking into account the state of the global economy.

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