Budget 2025: Growth-oriented, reform-focused & fiscally prudent
budget comes at a time of heightened global uncertainty and geo-economic fragmentation. In this backdrop, finance minister Nirmala Sitharaman chose to deliver a growth-oriented and reform-focused budget that kept the economy on a fiscally prudent path.
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The highlight of this year's budget was the focus on encouraging consumption by the middle class with a proposal to provide relief from tax for individuals having income up to ₹12 lakh. What is particularly noteworthy is that while doing so, the minister displayed astute financial management by keeping the fiscal deficit balanced at 4.8% of GDP for the current fiscal year and targeting 4.4% for the next year. Continued fiscal prudence is important for macroeconomic stability and to build resilience against any external shocks.
In adhering to the fiscal math, the FM retained the focus on capital expenditure. The allocation for capital spending in FY26 has been raised to ₹11.21 lakh crore, compared with ₹10.18 lakh crore spent in FY25. Over the last decade, targeted capital expenditure has been a hallmark of the government, which acts like a catalyst for economic growth and employment generation.
The budget adopted a multipronged approach with a focus on agriculture, power, mining, exports, investments, financial sector and tax
