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Budget Review FY2025-26: Capitalising on Consumption for the Next Phase of Growth

The Report summarises the key developments in the Union Budget FY2025-26. It posits that the approach to drive consumption in a time of global uncertainty to boost domestic demand is the right solution. Commenting the clever reallocation of revenue expenditures with both short term rural demand and long term capacity building in mind, it salutes the spending on agriculture. At the same time, there is no compromise on capex, just an invitation to States and private corporates to share the burden. Changes in the direct tax code were the highlight, in an attempt to boost urban demand. Finally, the Budget achieves all this while sticking to fiscal prudence.

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