Balanced Fiscal Strategy: FY26 Budget Boosts Growth Without Fueling Inflation

Finance Secretary Tuhin Kanta Pandey highlights the FY26 Budget's non-inflationary stimulus, promoting growth while balancing fiscal consolidation. With increased income tax rebates and fiscal targets set, the Budget aims to enhance savings, investment, and demand without provoking inflation, thus ensuring macroeconomic stability.

Finance Secretary Tuhin Kanta Pandey announced on Monday that the FY26 Budget provides a substantial non-inflationary boost to the economy, designed to foster incremental growth.

Pandey emphasized that the Budget aims to strike a balance between growth and inflation, maintaining exchange rate and macroeconomic stability while focusing on fiscal consolidation. At a Ficci post-budget session, he noted the non-inflationary stimulus will enhance savings, investment, and growth.

Union Finance Minister Nirmala Sitharaman's Budget also raises the income tax rebate limit to Rs 12 lakh, increasing disposable income for taxpayers, and setting a fiscal deficit target of 4.4% of GDP for FY26. Pandey stressed the importance of balancing fiscal policies to prevent reverse inflationary effects.

(With inputs from agencies.)