Budget 2025-26: Boosting Growth With Smart Spending And Tax Relief

Budget 2025-26 focuses on encouraging middle-class consumption. The proposal offers tax relief to individuals with incomes up to ₹12 lakh. At the same time, the Finance Minister maintains a balanced fiscal deficit of 4.8% of GDP for the current year and targets 4.4% for next year. This prudent fiscal management ensures stability and resilience against external shocks.

Capital expenditure remains a priority. The allocation for FY26 has increased to ₹11.21 lakh crore, up from ₹10.18 lakh crore in FY25. Over the past decade, capital spending has been a key growth driver, creating jobs and boosting the economy.

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The budget takes a multifaceted approach. It targets agriculture, power, mining, exports, financial reforms, and tax changes. The focus is also on emerging sectors like deep-tech, clean energy, and innovation. A notable proposal is allocating ₹20,000 crore for the Nuclear Energy Mission. It aims to set up five small modular nuclear reactors by 2033, with private sector involvement.

The budget also emphasizes growth enablers such as employment, skilling, startups, MSMEs, infrastructure, and women’s empowerment. These steps aim to create a virtuous cycle of consumption and investment, fostering inclusive growth.

Overall, the Budget 2025-26 presents strategies to support all growth engines, ensuring a robust economic future.