MUMBAI: The Union Budget presented by Finance Minister Nirmala Sitharaman prudently balances fiscal consolidation and growth objectives, according to an article by Reserve Bank of India (RBI) staffers.
The article, published in RBI’s February bulletin, highlights the Centre’s commitment to fiscal discipline while fostering long-term, inclusive growth.
“With a fiscal deficit target of 4.4 per cent of GDP, the Budget prudently manages fiscal consolidation and growth objectives,” the authors – including Akash Raj, Harshita Yadav, Kovuri Akash Yadav, and Aayushi Khandelwal—wrote.
It emphasises the Budget’s focus on four key pillars: agriculture, small businesses, exports, and investments. The document also outlines reforms in taxation, power, urban development, mining, and financial regulations.
The Rs1 lakh crore tax relief for the middle class is expected to boost household disposable income and drive consumption, the article noted.
Earlier this month, RBI Governor Sanjay Malhotra praised the Budget as an “excellent” blueprint for economic growth, adding that the tax relief aimed at stimulating demand would have no major impact on inflation.
