FM STRIKES BALANCE ON FISCAL PRUDENCE AND SOCIAL DEMANDS

FOR any new government, life actually begins with the first budget.

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The NDA government's first full Budget for 202425, too, started off with a rather belated but sincere effort to address the collective woes of the youth, smaller enterprises and, to an extent, the middle class. It also gave in to the special demands of coalition partners, the TDP and the JD(U), as the BJP can no longer govern alone. The good news, though, is it does all this and more without setting off fiscal alarms. Notwithstanding the pulls and pressures of populism, Finance Minister Nirmala Sitharaman set herself a daring challenge of debt reduction from 2026-27, as against the norm of reducing fiscal deficit alone. This is a first and underscores the substance and symbolism of all NDA budgets—better a rupee earned than two borrowed. The proposed move should help improve expenditure quality, reduce borrowing costs and lower interest outgo. Tax collections are on a tear; yet Sithar