New Delhi, Feb 3 (PTI) – Finance Minister Nirmala Sitharaman is set to address the Reserve Bank of India's (RBI) central board on February 8, shedding light on the key takeaways from the Union Budget FY26, including significant income tax relief aimed at stimulating demand.
The meeting, scheduled a day after the RBI’s Monetary Policy Committee (MPC) announces its latest policy decision, comes amid strong expectations of a rate cut to support slowing GDP growth.
Post-Budget Briefing to RBI Board
The customary post-budget address will see the finance minister elaborating on the government's efforts to strike a balance between economic growth and fiscal prudence, sources said. Sitharaman, while presenting the Budget on February 1, reaffirmed the government's commitment to reducing fiscal deficit while ensuring economic stability."Our endeavour will be to keep the fiscal deficit each year such that the central government debt remains on a declining path as a percentage of the GDP," Sitharaman had stated in her Budget speech.
The government has outlined a roadmap to reduce the debt-to-GDP ratio to about 50% by March 2031, down from the current 57.1%. The fiscal deficit target has been set at 4.4% of GDP for FY26, a reduction from the estimated 4.8% in FY25.
Income Tax Relief and Fiscal Measures
A major highlight of the Budget was the proposed income tax relief aimed at benefiting the middle class. Individuals earning up to ₹12.75 lakh annually will now be exempt from paying taxes, benefiting an estimated one crore taxpayers. The revised tax regime introduces new slabs, ensuring no tax liability on income up to ₹12 lakh per annum, with a ₹75,000 standard deduction for salaried individuals.The Budget also estimated total receipts (excluding borrowings) at ₹34.96 lakh crore and total expenditure at ₹50.65 lakh crore. Net tax receipts are projected to be ₹28.37 lakh crore.
Accompanying Officials
Finance Minister Sitharaman will be accompanied by Minister of State for Finance Pankaj Chaudhary, alongside key finance ministry officials, including the Finance Secretary, Economic Affairs Secretary, Expenditure Secretary, and Financial Services Secretary.With economic growth and fiscal consolidation at the forefront, Sitharaman’s address to the RBI board will be closely watched for insights into the government’s policy direction post-budget.
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