Until 1991, the union budgets used to evoke a lot of excitement for the wrong reasons. Given the prevailing license-permit-quota raj and oppressive government control of economic activity, tinkering with excise and customs duties used to be the favourite pastime of finance ministers. Enormous profits accrued through manipulation of duties to favoured business houses, and fair market competition was generally absent.

A budget is nothing but a statement of accounts and should be an unspectacular, boring exercise. Mercifully, the Union budget for FY 2025-26 is indeed largely predictable and marks continuity in policy. In the face of global headwinds and decentralisation of growth, the finance minister did a commendable job. Impressive fiscal discipline has been maintained, with the deficit brought down to 4.8% in the current year (RE) and estimated at 4.4% in the next financial year. The union debt, as a share of GDP, continues to decline. Capital expenditure continues to break records for a third year in succession. Out of the ₹48.33 trillion total revenues (tax non-tax), ₹25.60 trillion, an impressive 53%, will be transferred to states and union territories in some form or other in FY 2025-26. All this has been accomplished while keeping those with an annual income of ₹12 lakhs or below fully exempted from the income tax. Among large........

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