Overview
- Finance Minister Nirmala Sitharaman’s ninth budget pegs the fiscal deficit at 4.3% of GDP and projects the Centre’s debt ratio at 55.6%.
- Public capital expenditure rises to about Rs 12.2 lakh crore, funding new dedicated freight corridors, seven high‑speed rail corridors and additional national waterways.
- The financing mix features net market borrowings of Rs 11.7 trillion, record gross borrowings of Rs 17.2 trillion, and roughly Rs 3.16 trillion drawn from RBI and public‑sector dividends.
- A corporate tax shift makes the Minimum Alternate Tax a final levy for entities in the new regime with MAT credit setoff capped at 25%, alongside targeted support for MSMEs, electronics, textiles and critical minerals.
- Economic Affairs Secretary Anuradha Thakur calls the 4.3% target realistic, and the finance minister says a US tariff cut to 18% gives exporters an edge, as analysts note limited household relief and tighter social and rural allocations.