NEW DELHI: India Finance Minister Nirmala Sitharaman is all set  address the Reserve Bank of India’s (RBI)  central board on Saturday, February 8. This meeting takes an evaluation  on key points from the 2025-26 Budget, including major income tax cuts aimed at boosting demand. The meeting comes a day after the RBI’s Monetary Policy Committee meeting, where many expect a rate cut to help support slowing GDP growth.

The post-budget meeting is set to discuss how the Budget strikes a balance between growth and fiscal discipline. It is a regular practice for the finance minister to meet with the RBI board after the Budget is presented.

During her Budget speech on February 1, Sitharaman emphasized the government’s goal to reduce the fiscal deficit while making certain the country’s debt remains manageable. She also shared a plan to reduce the debt-to-GDP ratio to 50 percent by March 2031, down from 57.1 percent now. For FY26, the fiscal deficit is expected to fall to 4.4 percent of GDP, compared to an estimated 4.8 percent in the current year.

The government has projected Rs 34.96 lakh crore in total receipts (excluding borrowings) and Rs 50.65 lakh crore in expenditure. Net tax receipts are estimated at Rs 28.37 lakh crore.

A key feature of the Budget is significant income tax relief. People earning up to Rs 12.75 lakh annually will not have to pay any income tax. This tax benefit will help around one crore tax-payers. Under the new tax regime, people with income up to Rs. 12.00 lakh will pay no tax, thanks to a standard deduction of Rs. 75,000 for salaried individuals.

Along with the finance minister, the meeting will include other senior officials, including the Minister of State for Finance, Pankaj Chaudhary, and various key secretaries.

Government’s Focus on Inclusive Growth

In her budget speech, Finance Minister Nirmala Sitharaman said the government's commitment to 'Sabka Vikas' (development for all).  The Modi government is focused on driving economic growth through large-scale infrastructure investments, though the budget presentation was met with opposition protests in Parliament.

Prime Minister Modi aims to make India a developed nation by 2047, but experts believe this will require sustained growth of around 8 percent. Both the International Monetary Fund (IMF) and the World Bank estimate India’s growth at 6.5 percent  and 6.7 percent , respectively, for the coming years.