The Union Budget for 2025-26 is expected to emphasize significant capital expenditure, fiscal consolidation, and measures aimed at boosting economic growth, according to ICRA. The ratings agency highlighted that the government plans to focus on creating jobs, offering relief to personal income taxpayers, and revitalizing the manufacturing sector.
Capital expenditure is likely to remain a top priority as the government aims to stimulate infrastructure development and economic activity. Increased investments in sectors such as transportation, energy, and technology are anticipated to play a key role in fostering growth and creating employment opportunities.
Fiscal consolidation will also be a critical focus of the budget, with measures to improve revenue collection and manage public spending. By balancing growth-oriented initiatives with fiscal prudence, the government aims to maintain economic stability while addressing key developmental goals.
ICRA further predicts that the budget will include targeted relief for personal income taxpayers, aimed at boosting disposable income and consumer spending. This step is expected to enhance demand across various sectors, including manufacturing, which the government aims to strengthen through targeted incentives and policy support.
Overall, the Union Budget 2025-26 is poised to adopt a balanced approach, driving long-term economic growth through strategic capital investments while maintaining fiscal discipline to ensure sustainable development.
