Union Budget 2025 Balances Fiscal Priorities: Modest 9.8% Capex Hike Offset by Major Middle-Class Tax Relief

India’s Union Budget 2025-26 set a capital expenditure target of ₹11.2 lakh crore for FY26, marking a 9.8% increase from FY25’s revised estimates. While this signals a slower pace compared to previous double-digit growth years, the government prioritized fiscal consolidation and tax reforms, raising the income tax exemption limit to ₹12 lakh annually—a move projected to benefit 60 million taxpayers and boost disposable income. Analysts note the capex focus remains on roads, railways, and PPP projects, though execution challenges persist after FY25’s underutilized outlay. The budget aligns with India’s growth strategy, balancing infrastructure spending with consumption-driven stimulus.

Source: Moneycontrol, Business Standard, The Indian Express