365Telugu.com online news, February 2nd,2025: The Union Budget 2025 has addressed concerns over slowing middle-class demand by rationalizing personal income tax slabs and revising tax deducted at source (TDS) limits. This move is expected to boost consumer spending and savings, particularly for households grappling with high inflation and sluggish income growth.

Beyond tax relief, the budget prioritizes improving the ease of doing business with a “light touch” regulatory approach. The government’s five-year fiscal roadmap emphasizes support for agriculture, MSMEs, and exports while encouraging greater private sector participation in capacity-building initiatives.

While the budget maintains the capital expenditure (capex) target largely unchanged from the 2024-25 estimates, it leans towards stimulating consumption. The fiscal strategy aligns with the government’s broader goal of fiscal consolidation, setting a fiscal deficit target of 4.4% for 2025-26. Despite revenue losses from tax adjustments, fiscal discipline is ensured through expenditure compression.

Economic projections remain stable, with GDP growth estimated at 6.6% for 2025-26. For bond markets, there were no major surprises, as market borrowings align with expectations. Combined with anticipated RBI rate cuts and open market operations, bond yields are likely to decline in the coming months.