Prime Minister Narendra Modi held a brainstorming session with economists and sectoral experts on Monday to gather views and suggestions for the Union Budget for 2025-26. The meeting was attended by Finance Minister Nirmala Sitharaman, Niti Aayog Vice Chairman Suman Bery, Niti Aayog CEO BVR Subrahmanyam, Chief Economic Advisor Anantha Nageswaran, and economists including Surjit Bhalla and DK Joshi.
This session comes as the government plans to continue investments in infrastructure projects aimed at boosting economic growth and employment. The Budget is scheduled to be presented in Parliament on February 1, 2025.
Government measures such as free foodgrain distribution and housing support for economically weaker sections in rural and urban areas remain focal points. Inflation, which has recently eased due to slowing food prices, has allowed the Reserve Bank of India (RBI) to cut the cash reserve ratio (CRR) for banks from 4.5% to 4%. This reduction marks the first cut since March 2020 and is expected to inject ₹1.16 lakh crore into the banking system.
India, maintaining its position as a fast-growing major economy, is preparing for a budget that may focus on accelerating growth. Higher tax collections have contributed to fiscal stability. Net direct tax collections, including corporate and personal income taxes, rose by 15.4% to ₹12.1 lakh crore between April 1 and November 10, as per data from the Central Board of Direct Taxes.
Official figures show that the Centre’s fiscal deficit for the April-October period stood at 46.5% of the full-year target. The government aims to reduce the fiscal deficit to 4.9% of GDP in the current financial year, compared to 5.6% in the previous year.
The government’s adherence to its fiscal consolidation plan, along with growing GST collections, has supported its financial standing. A controlled fiscal deficit reduces borrowing requirements and ensures liquidity in the banking system. This supports corporate investments and economic expansion, while keeping inflation rates stable.
(IANS)
