New Delhi, Feb 2: The Union Budget 2025-26 ultimately aims to lift overall consumption which is the need of the hour to stimulate economic growth, said a report on Sunday.

It’s being addressed by tax incentives in the hands of the middle class to boost household confidence. The continuation of the capex push will further lift overall public capex and subsequently private investment.

The allocation is spread across sectors by way of policy or budgetary measures to secure inclusive development. While focusing on reforms, Finance Minister Nirmala Sitharaman remained committed to fiscal consolidation, setting the fiscal deficit target at 4.4 per cent of GDP for 2025-26 and revised the estimates for 2024-25 at 4.8 per cent,” according to the report by Asit C Mehta Investment Interrmediates Ltd.

The Budget aims at the continuation of various reforms to boost exports and domestic manufacturing. It showcases an overall positive picture to generate employment opportunities, revive consumption and pursue economic growth, the report stressed.

The Indian economy continues to be the fastest-growing among major global economies, presenting a unique opportunity over the next five years to realise ‘Sabka Vikas’ by fostering balanced and inclusive regional growth.

The Union Budget 2025-26 builds upon the Government’s commitment to accelerating economic expansion, securing inclusive development, invigorating private sector investments, uplifting household sentiment, and enhancing the spending power of India's rising middle class.

Four key drivers — Agriculture, MSMEs, Investment, and Exports — are poised to fuel this journey of development. To support this momentum, a capital expenditure (Capex) allocation of Rs 11.21 lakh crore (3.1 per cent of GDP) has been earmarked for 2025-26.

“This budget also sets the stage for transformative reforms across six crucial domains: Taxation, Power Sector, Urban Development, Mining, Financial Sector, and Regulatory Reforms,” the report mentioned.

Over the next five years, these reforms will strengthen India's global competitiveness and drive sustainable growth, ultimately steering the economy towards the vision of ‘Viksit Bharat,’ it added.

The Union Budget 2025-26 introduces far-reaching tax reforms to simplify compliance, encourage economic growth, and ensure fiscal stability. The government remains committed to reducing tax burdens on individuals and businesses, broadening the tax base, and ensuring a progressive taxation system.

--IANS

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