Sun Feb 02 14:39:10 UTC 2025: ## Union Budget 2026: Financial Sector Lauds Inclusive Growth and Fiscal Prudence

**Thrissur, February 2, 2025** – The Union Budget 2026 has been met with widespread praise from the financial sector, with experts hailing its emphasis on inclusive development and fiscal prudence. The budget, presented amidst global economic uncertainty, is seen as a stabilizing force for the Indian economy.

Key highlights lauded by financial leaders include:

* **Fiscal Prudence:** The maintained fiscal deficit target of 4.4% for FY26 is seen as a demonstration of responsible economic management, balancing growth with stability.
* **Increased Capital Expenditure:** A significant ₹11.21 lakh crore allocation for capital expenditure in productive sectors is expected to stimulate capital formation and economic growth.
* **Support for MSMEs:** The ₹1.5 lakh crore allocation for MSMEs is viewed as crucial for boosting manufacturing and creating a positive ripple effect across the economy.
* **Inclusive Development Initiatives:** Measures like the Grameen Credit Score, increased Kisan Credit Card limits (₹3 lakh to ₹5 lakh), and credit cards for micro-enterprises are seen as significant steps towards inclusive growth. The launch of BharatTradeNet (BTN) for international trade is also a key highlight.
* **Tax Relief for Middle Class:** The exemption of income tax on annual incomes up to ₹12 lakh is expected to significantly boost disposable income and consumption, contributing to economic momentum. This is seen as a major boost to the middle class and a key driver of future growth.

Vinod Francis, GM-CFO of South Indian Bank, highlighted the budget’s role in increasing disposable income and reviving consumption. K. Paul Thomas, MD & CEO of ESAF Small Finance Bank, emphasized the welcome emphasis on inclusivity. V. P Nandakumar, MD & CEO of Manappuram Finance Ltd., described the tax relief as a major economic boost, emphasizing its positive impact on consumption and savings. The budget is widely viewed as not only sustaining current growth but also laying a strong foundation for future development.

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