PM Narendra Modi | Union Finance Minister Nirmala Sitharaman recently shed light on the Union Budget 2025-26 during a Parliamentary debate, offering insights into the Indian economy and the reforms in progress, as noted by Prime Minister Narendra Modi on Saturday.
On the social media platform X, PM Modi shared his thoughts, highlighting that Sitharaman’s speech in Parliament presented a transparent overview of India’s economic landscape and the direction of its reforms.
In her Lok Sabha address, Sitharaman confidently asserted that India is poised to retain its status as the fastest-growing economy globally, bolstered by heightened government capital expenditure and an upsurge in rural consumption.
She indicated that the effective capital expenditure in the 2025-26 Budget is set at 4.3 percent of GDP, with a fiscal deficit projection of 4.4 percent. Responding to the opposition’s critiques, she clarified that the capital expenditure allocation has increased to ₹1.21 lakh crore, countering claims of budgetary reductions.
Sitharaman stressed that managing inflation remains a paramount concern for the government, ensuring overall retail inflation stays within the targeted range of 2 percent to 6 percent.
Addressing the Rajya Sabha, the finance minister pointed out the global challenges shaping the Budget, including an increasingly fragmented world economy marked by rising tariff barriers, despite ongoing discussions about globalization.
“For decades, we have advocated for globalization, yet we are witnessing a trend towards fragmentation. While everyone supports free markets, tariff barriers are becoming more prevalent. The global landscape is evolving significantly,” she remarked.
Sitharaman also noted the unpredictability of global trends complicating economic modeling.
“Despite these challenges, we strive for the most accurate assessments, always keeping India’s interests at the forefront. The current uncertainty impacts vital imports that are crucial for India’s economic growth,” she added.
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She assured that the Budget does not compromise on sectoral allocations, with the effective capital expenditure for the upcoming fiscal year projected at ₹19.08 lakh crore.
In addition, she introduced the new Income Tax Bill, 2025, in the Lok Sabha this week, part of a broader strategy for tax reforms that aim to simplify provisions and minimize legal disputes.
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