FY 2026 Budget: Economists Suggest Industrial Policy, Fiscal Relaxation

New Delhi, Dec 6 (PTI) Economists on Friday suggested the government to come out with an industrial policy to boost manufacturing and relax the fiscal consolidation roadmap in the Budget for next fiscal.

Finance Minister Nirmala Sitharaman on Friday met eminent economists to seek their views on the Union Budget for 2025-26 to be tabled in Parliament on February 1, 2025.

Speaking to reporters after the meeting, Swadeshi Jagran Manch National Co-convenor Ashwani Mahajan said economists suggested the government ways to increase investment and also gave suggestions to control food inflation and dealing with climate change.

With regard to fiscal consolidation, Mahajan said some economists were of the view that it could be relaxed while some felt that the glide path should be adhered to.

In the Union Budget, the government projected to bring down the fiscal deficit to 4.9 per cent of gross domestic product (GDP) in the current 2024-25 financial year. The deficit was 5.6 per cent of the GDP in 2023-24.

As per the fiscal glide path, the deficit would be brought down to 4.5 per cent of GDP in 2025-26.

Economists were of the view that the Budget should come with a comprehensive manufacturing and industrial policy.

Chartered Accountant and eminent economist Anil Sharma said that there were also suggestions with regard to cut in personal income tax to increase consumption.