Strategic push for growth with I-T relief

BUDGET 2025, PRESENTED by the finance minister, was balanced, with efficient allocation of resources and positive surprises on the personal taxation front.

- NILESH SHAH MD, KOTAK MAHINDRA AMC

The budgeted numbers look credible, with a nominal GDP growth rate assumption of 10.1% for FY 2025-26. The net tax receipt is also budgeted to grow at 10.97%.

As promised in the last Budget, the government continued on the path of fiscal consolidation with the fiscal deficit target of 4.4% of GDP for FY 2025-26, down from 4.8% of GDP (revised estimate vs 4.9% of budget estimate) in FY 2024-25. Further, the Budget speech mentioned that going-forward, the endeavour will be to keep fiscal deficit such that the central government debt as a percentage of GDP will be on a declining path. The government has provided the roadmap for the next six years for a declining central government debt to GDP ratio.