Balancing growth with fiscal prudence

Sir,

The Union Budget 2025-26 strikes a commendable balance between economic growth and fiscal discipline. The increase in the income tax exemption limit to Rs12 lakh is a significant relief for the middle class, fostering consumption and savings. Boosting capital expenditure on infrastructure and defence modernisation is a strategic move, ensuring long-term growth and national security.

The emphasis on indigenous defence procurement and green energy aligns with self-reliance and sustainability goals. However, effective implementation is key. While fiscal consolidation is addressed, maintaining a 4.4% fiscal deficit requires careful management of public spending.

Additionally, stronger measures for MSMEs, tourism, and digital innovation will enhance economic resilience. The budget sets the right tone for a 'Viksit Bharat,' but execution and policy consistency will determine its success.

Neha Sharma

Samba