Budget sets a comprehensive blueprint for India's growth

Finance Minister (FM) Nirmala Sitharaman has presented a forward-looking Budget, reinforcing the government's commitment to 'Reform, Perform, and Transform'.

- NILESH SHAH

Amid the dual challenges of adhering to the fiscal glide path and supporting demand in a slowing economy, the Budget strikes a delicate balance. It continues the path of fiscal consolidation while lowering tax rates for the middle class to boost consumption. This dual approach aims to ensure long-term financial stability while addressing the needs of all sections of society.

The government's commitment to fiscal prudence is evident in its fiscal deficit target of 4.4 per cent of GDP for FY26, down from 4.8 per cent in FY25. This move is part of a broader strategy to maintain fiscal discipline while supporting growth. The Budget projects net borrowings at ₹11.5 trillion for FY26, aligning with market expectations.

Importantly, the FM laid out a fiscal road map for the next five years, which would help rebuild fiscal buffers and provide policymakers with the space to undertake growth-enhancing expenditures as needed.