Union Budget FY25-26: A prudent approach to fiscal discipline and sustainable growth
The Union Budget for FY25-26 strikes a balance between fiscal discipline and the need for sustained economic growth. The government's decision to reduce the fiscal deficit target from 4.8% to 4.4% is an important step towards long-term financial stability. Although economic growth is estimated to decline from 8% in the previous fiscal to between 6.3% and 6.8% (real GDP growth), this reflects a more stable and sustainable growth rate given the global economic challenges. Empowering the middle class:A key aspect of the budget is the revision of the personal income tax slab. This will increase the disposable income of the middle class, which will encourage consumer spending and boost the economy. Although inflation and wage growth constraints are a matter of concern, tax relief will support t...









