Fiscal, monetary policies have to work in tandem

Finance secretary says factors such as rupee depreciation are also at play currently

- Gireesh Chandra Prasad

Finance Secretary Tuhin Kanta Pandey said on Tuesday that fiscal and monetary policies have to work in tandem, not at cross purposes, but factors like rupee depreciation are also at play, which the Reserve Bank of India (RBI) is seized of.

Speaking at a post-budget interaction organized by industry chamber Assocham, Pandey described the Union budget for FY26, which stuck to fiscal discipline and set a five-year debt reduction plan till FY31 in spite of tax relief offered to individuals as "non-inflationary," which aids RBI.

Pandey's comments come at a time the government has sought to boost consumption by giving a tax stimulus—an income tax cut that costs the exchequer ₹1 trillion—and expects supportive monetary conditions that will further support demand for goods and services, thereby boosting private investments and adding momentum to economic growth.