Union Budget Balances Fiscal Prudence and Growth Goals

An article by Reserve Bank staffers praises the Union Budget for prudently balancing fiscal consolidation with growth objectives. It emphasizes fiscal discipline while aiming for inclusive, long-term economic growth. Key reforms focus on agriculture, small businesses, exports, and investments, with significant tax relief boosting disposable incomes.

The Union Budget, presented by Finance Minister Nirmala Sitharaman, has been commended for its careful balancing of fiscal consolidation and growth goals, according to an article by Reserve Bank staffers. The article acknowledges the budget's affirmation of the Centre's commitment to fiscal discipline, though it does not necessarily reflect the central bank's official stance.

According to the article, the budget pursues inclusive and long-term economic growth with a fiscal deficit target of 4.4% of GDP. It emphasizes growth through agriculture, small businesses, the export sector, and investments, while outlining reforms across taxation, urban development, and financial sectors.

Highlighting a Rs 1 lakh crore tax relief for the middle class, it suggests this measure will enhance household disposable income and stimulate consumption. RBI Governor Sanjay Malhotra also hailed the budget as an excellent document supporting economic growth, aligning with the central bank's inflation curtailment goals.

(With inputs from agencies.)