Budget 2025: Balancing reforms and fiscal consolidation to revive growth

In less than two weeks, the finance minister will present the Union Budget for 2025-26. This Budget comes against the backdrop of a slowing economy characterised by high levels of fiscal deficit and debt. That means the FM will have to find a way to announce policy initiatives to revive growth while also achieving fiscal discipline. While calls for tax cuts and increased infrastructure spending are loud, this Budget must do a lot more to drive sustained growth.

 

The two key questions are: What is the diagnosis of the economic slowdown? And what can the Budget do to address it?