shape
shape

Thought Leadership Forum: Dr. Parthasarathi Shome on India’s Union Budget Strategy

Date: 27 February, 2026 Share on WhatsApp
Venue:St. Joseph’s Institute of Management (SJIM)


St. Joseph’s Institute of Management (SJIM) hosted an insightful session under its Thought Leadership Forum on 27 February 2026. The distinguished speaker for the day was Dr.Parthasarathi Shome, Chairman of the International Tax Research and Analysis Foundation (ITRAF), Visiting Senior Fellow at the London School of Economics, and former Minister of State and Adviser to the Indian Finance Minister. He is also a recipient of Brazil’s highest civilian honour, the Commander of the Order of the Southern Cross, and has served as Chairman of the Tax Administration Reform Commission in India.

Dr. Shome delivered a compelling analysis of the Union Budget framework, offering students and faculty a deeper understanding of India’s fiscal strategy. He highlighted a strategic shift toward increasing capital expenditure while reducing revenue expenditure, including salaries, pensions, and social sector subsidies. He noted that interest payments remain a structural constraint, accounting for nearly one-fourth of total Union expenditure.

A key concern raised during the session was the shrinking social sector allocation—from 30% of total expenditure in 2020–21 to 17% in 2025–26. Within this reduced share, nearly 38% of funds are directed toward infrastructure-linked initiatives such as Jal Jeevan and Awas Yojana, resulting in stagnant or declining real allocations for traditional social services as the government prioritizes fiscal deficit reduction.

Dr. Shome also addressed persistent implementation shortfalls caused by bureaucratic delays in project selection and fund allocation, often occurring late in the financial year. He cited significant underspending in 2024–25, including shortfalls of 78% in the Ministry of Minority Affairs and 49% in Labour & Employment, reflecting a widening gap between announced schemes and actual expenditure.

Looking ahead to the 2026–27 Budget, he discussed major allocations including ₹7.85 lakh crore for Defence, along with new initiatives such as “NIMHANS 2.0” and a Digital Knowledge Grid aimed at promoting research and employment generation.

He concluded by advocating for a more rigorous and transparent pre-budget analytical framework, drawing parallels with the UK’s HMRC model, which employs over 400 experts for policy analysis to strengthen fiscal decision-making.

The session reinforced SJIM’s commitment to fostering policy awareness, analytical thinking, and responsible leadership among future management professionals.