Fiscal Developments: Anchoring Stability through Credible Consolidation

  • Fiscal Credibility: Prudent management led to three 2025 sovereign rating upgrades (Morningstar DBRS, S&P Global, R&I).
  • Revenue Strengthening: Receipts rose from 8.5% (FY16-20 avg) to 9.2% of GDP (FY25 PA), driven by non-corporate taxes increasing from 2.4% to 3.3% of GDP.
  • Tax Base Expansion: Income tax returns grew from 6.9 crore (FY22) to 9.2 crore (FY25) due to tech-driven compliance and rising incomes.
  • GST & Activity: Apr-Dec 2025 GST collections reached Rs.17.4 lakh crore (+6.7% YoY); e-way bill volumes surged 21% YoY.
  • Capital Expenditure: Central effective capex rose from 2.7% (pre-pandemic) to 4% of GDP (FY25).
  • State ....
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