FM provides a tax bonanza, but keeps to the fiscal consolidation path

Fm provides tax relief, but keeps to the fiscal path

The highlight of the first full Budget of the National Democratic Alliance government under the leadership of Prime Minister Narendra Modi was the rationalisation of tax rates, which provided relief to taxpayers across income groups. While the government has foregone Rs 1 lakh crore in revenues, it is still expecting a 14 percent jump in income tax collections for FY26. Over 85 percent of the tax return filers are expected to pay no taxes as their income falls below the minimum threshold of Rs 12 lakh, according to an MC analysis. The government has kept to the fiscal consolidation path, while providing a push to capex as well. MC takes a look at the big Budget numbers in 8 charts:

Budget gives big relief to tax filers

Capex spending push continues

But with more diversification

Budget size crossed Rs 50 lakh crore for the first time

But government follows fiscal consolidation

As growth picks up

And direct tax collections are expected to soar

Govt has set a target to reduce debt to around 50% by 2031