Synopsis
Finance Minister Nirmala Sitharaman announced the 2025-26 Budget focusing on employment-led growth while aiming to reduce the fiscal deficit to 4.4% of GDP from 4.8% in 2024-25. The budget emphasizes agriculture, MSMEs, and exports to ensure economic stability.Key Takeaways
- Fiscal Deficit reduced to 4.4% of GDP.
- Focus on employment-led growth.
- Increased gross borrowing target to Rs 14.82 lakh crore.
- Total receipts projected at Rs 34.96 lakh crore.
- Tax revenue estimated at Rs 38.40 lakh crore.
New Delhi, Feb 1 (NationPress) Finance Minister Nirmala Sitharaman introduced the 2025-26 Budget in Parliament on Saturday, focusing on stimulating employment-driven growth with a particular emphasis on the agricultural and rural sectors, MSMEs, and exports, while maintaining a trajectory of fiscal consolidation to promote economic stability.
She has set the budget deficit target on a downward trend to 4.4% of GDP for 2025-26, down from 4.8% of GDP in 2024-25.
The net market borrowing for this budget has been established at Rs 11.54 crore, with the remaining funds sourced from small savings schemes, as stated by the Finance Minister.
The government has revised its gross borrowing target for FY26 upward by 5.7%, setting it at Rs 14.82 lakh crore, an increase from the previous Rs 14.01 lakh crore for FY25.
"In the July Budget, I pledged to adhere to the course of fiscal consolidation... Our goal will be to ensure that the fiscal deficit each year allows the Central government debt to decline as a percentage of GDP," FM Sitharaman remarked.
"As we look toward 2025-26, total receipts excluding borrowings are projected at Rs 34.96 lakh crore while total expenditure is estimated at Rs 50.65 lakh crore. The net tax receipts are projected to be Rs 28.37 lakh crore. The fiscal deficit is estimated at 4.4% of GDP," the Finance Minister added.
In the FY'25 Budget, the government anticipated gross tax revenue of Rs 38.40 lakh crore, representing a 11.72% increase from FY'24. This forecast includes Rs 22.07 lakh crore from direct taxes (personal income and corporate tax) and Rs 16.33 lakh crore from indirect taxes (customs, excise, GST).
