budget emphasises on governance, creating capacities and conditions suitable for best execution and implementation of its policies. It has laid the responsibility of future progress of the Indian economy on the large consumer population, the middle class, and the private sector. Tax slabs have been rationalised in personal income tax, increasing the purchasing power of consumers at large. The demographic dividend of our country along with emphasis on consumption seems like a step in the right direction over a medium to long term.
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Markets could be a bit disappointed as there has been lesser emphasis on capital expenditure which is in line with FY 25. The government has lowered the fiscal deficit which seems like a good move staying in line with general expectations of fiscal consolidation. “Fiscal consolidation and stable borrowing numbers might lay the on us for further interest rate trajectory in hands of RBI decision to support liquidity going ahead”
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Gross borrowing (FY26 Rs 14.84 tn crore vs FY25 Rs 14tn) is higher whereas Net borrowing (FY26 Rs 11.54tn vs FY25 Rs 11.6tn) is similar to last year.