PM Modi Highlights Union Finance Minister's Insight on Indian Economic Reforms
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Synopsis
Prime Minister Narendra Modi praised Union Finance Minister Nirmala Sitharaman for providing a clear overview of India's economy and reforms during the Union Budget 2025-26 discussion in Parliament, highlighting capital expenditure and inflation management.
Key Takeaways
- Finance Minister Nirmala Sitharaman outlined the Indian economy's growth prospects.
- Capital expenditure is projected at Rs 1.21 lakh crore.
- Inflation management is the government's top priority.
- The Budget for FY26 faced significant external challenges.
- New Income Tax Bill introduced to streamline tax provisions.
New Delhi, Feb 15 (NationPress) Prime Minister Narendra Modi remarked on Saturday that Union Finance Minister Nirmala Sitharaman has offered a clear depiction of the Indian economy and the ongoing reforms during her address regarding the Union Budget 2025-26 in Parliament this week.
“In her address, Finance Minister @nsitharaman has presented a concise overview of the Indian economy and the reform path we are pursuing,” PM Modi shared on the social media platform X.
In the Lok Sabha Budget debate, the Union Finance Minister asserted that the Indian economy is set to remain the fastest-growing economy globally, bolstered by an increase in government capital expenditure for the Budget 2025-26 and heightened consumption levels, particularly in rural regions.
She indicated that the effective capital expenditure is projected at 4.3 percent of GDP in the Budget for 2025-26, with the fiscal deficit at 4.4 percent.
Furthermore, she referenced Budget figures to demonstrate that the capital expenditure allocation has risen to Rs 1.21 lakh crore, countering opposition claims of a reduction in outlay.
As per her statement, managing inflation remains the government’s top priority, with overall retail inflation contained within the acceptable tolerance band of 2 percent to 6 percent.
During the Rajya Sabha Budget debate, FM Sitharaman stated that the Budget for FY26 was crafted under challenging circumstances, with significant external challenges that were unpredictable.
“For decades, we have discussed globalization. Currently, we are encountering issues of fragmentation globally. While everyone desires free markets, there are rising tariff barriers. The world is undergoing a significant transformation,” remarked the Finance Minister.
She noted that it is difficult to create models to predict trends due to their dynamism.
“Regardless, we have endeavored to keep our assessments aligned closely with India's interests. This considerable uncertainty continues to affect many essential imports for our economy,” she added.
The Budget has not curtailed sectoral allocations, with effective capital expenditure for the upcoming fiscal year estimated at Rs 19.08 lakh crore, according to FM Sitharaman.
Additionally, she introduced the new Income Tax Bill, 2025, in the Lok Sabha this week, aimed at tax reforms to simplify provisions for better understanding and to minimize legal disputes.
