New Delhi, Jan. 31 -- With the Union Budget for FY27 scheduled for Sunday, expectations are tamed even as markets remain alert to the possibility of selective positive surprises, according to a pre-Budget note by Union Bank of India (UBI).

The report notes that while the Government does not wait for the Budget to announce key reforms, the Budget continues to be a crucial policy document, especially at a time when most major policy announcements are already under execution.

UBI expects fiscal consolidation to continue in FY27, albeit at a slower pace. The fiscal deficit is projected at 4.2-4.4 per cent of GDP, with the bank stating, "We see fiscal consolidation to continue in FY27, albeit at slower pace, to 4.2% of GDP, in order to prese...