Quote on Union Budget 2025 by Dr. Manoranjan Sharma, Chief Economist at Infomerics Ratings
Below the Quote on Union Budget 2025 by Dr. Manoranjan Sharma, Chief Economist at Infomerics Ratings
Union Budget 2025-26- Continuity with Change
Development measures focused on Garib, Youth, Annadata and Nari are contextually significant and welcome. There are significant measures here to boost agricultural production and productivity. MSMEs are a driver of both economic growth and structural transformation. Hence measures aimed at higher Credit guarantee cover, thrust on exporter MSMEs and a sharper focus on start-ups will provide an impetus to broad-based economic growth and modernisation.
Entirely in line with our expectations, the fiscal deficit number for FY 25 has come in at 4.8 % - below the budgeted level of 4.9 %- and for FY 26 at 4.4 %. This is greatly welcome for the domestic macroeconomy and will send the right message to global investors, multilateral institutions and the global rating agencies. As visualised by us and strongly stressed on multiple channels and in various mediums, the middle class has been given a welcome relief with no Income Tax upto Rs.12 lakhs Income. For salaried persons, it will go up to Rs. 12. 75 lakhs by factoring in standard deduction.
In sum, this Budget is marked by cross-cutting strategically themes of fiscal prudence, economic growth, structural transformation and distributive equity. In view of the ravages of the inflationary spiral and the shrinking disposable income, this enhanced income tax limit will be welcome across the development spectrum. In sum, the Budget is marked by an accent on fiscal prudence, economic growth, structural transformation and the needs of the middle class.
Given the heightened global dynamics and the macroeconomic changes, the FM has done the best of a difficult task.
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