Chidambaram predicts 6-6.5% growth for economy in 2025-26, sticking to the same path
Chidambaram predicts 6-6.5% growth for economy in 2025-26, sticking to the same path

Income Tax Relief: The new tax regime introduces tax slabs with no tax on annual income up to Rs 12 lakh (Rs 12.75 lakh for salaried taxpayers, including the standard deduction). This move is expected to benefit the middle class, with about 1 crore more individuals falling into the non-taxable category.
Fiscal Prudence and Capital Expenditure: The fiscal deficit target for 2025-26 is set at 4.4%, maintaining fiscal discipline. Capital expenditure will rise marginally to Rs 11.2 lakh crore, signaling continued infrastructure development, albeit at a slower pace compared to previous years.
Growth Projections: The economy is expected to grow at a steady 6% to 6.5% in FY25-26, with a target of 8% annual growth to achieve the "Viksit Bharat" vision by 2047.
Focus on Agriculture and Small Industries: Agriculture and small industries are emphasized as engines of development, with new schemes aimed at rejuvenating these sectors. This includes a focus on human capacity enhancement and skills development.
Health and Education: The budget proposes measures like the creation of daycare cancer centers and exemptions on cancer drug duties. In education, the allocation for the Ministry of Education is increased, with plans for expansion at IITs and the addition of 10,000 medical seats.
Digital and Financial Inclusion: The push for digital payments and fintech growth includes the introduction of a revamped central KYC registry and enhancing the PM SVANidhi scheme for street vendors. There are also efforts to strengthen rural banking through India Post Payment Bank.
Infrastructure Investments: A focus on infrastructure development, particularly in education and healthcare, with specific allocations for expanding IITs and creating new medical seats.
The budget balances tax relief with fiscal discipline, and while it addresses growth concerns, it also lays the groundwork for future prosperity in key sectors like agriculture, education, and fintech.