Finance Minister Nirmala Sitharaman has responded to opposition criticism of the Union Budget, stating that rising personal income tax collections signal economic expansion and formalisation rather than financial strain on the middle class.
Addressing concerns over welfare allocations and fiscal devolution, she said that higher personal income tax receipts do not mean that India’s middle class is being burdened. Instead, she maintained that the figures reflect a broadening tax base and increased participation in the formal economy.
Describing her ninth Budget as a long-term roadmap, Sitharaman emphasised that the government’s focus remains on sustaining growth and investment rather than pursuing short-term measures. She rejected allegations that the Goods and Services Tax has raised the cost of essential services, clarifying that milk, education, textbooks, healthcare and funeral services continue to remain exempt.
The Finance Minister also accused critics of misrepresenting the tax structure to create unnecessary concerns. She said the Budget is aligned with the upcoming cycle of the 16th Finance Commission and is designed to maintain fiscal stability.
On the agriculture front, the government is promoting digital agri-stack systems and scientific crop practices to reduce farmer risk. Fertiliser subsidies worth Rs 1.71 lakh crore have been approved to ensure stable supply, while fisheries and allied sectors are set to receive additional support.
Fiscal estimates project gross tax receipts of Rs 44.04 lakh crore and total expenditure of Rs 53.47 lakh crore, with the fiscal deficit targeted at 4.3 per cent of GDP. Transfers to states are pegged at Rs 25.44 lakh crore for 2026–27.
With food inflation below two per cent and the free grain scheme continuing to benefit 80 crore people, Sitharaman said the Budget aims to act as a stabilising framework amid global economic uncertainty.
