Union Budget aims at structural reforms and long-term stability: Retired IRS Officer

New Delhi: Retired IRS officer and former Assistant Director of the Enforcement Directorate, Anil K. Rawal, on Monday described this year’s Union Budget as a positive and forward-looking policy document that focuses on long-term economic stability rather than short-term market reactions.

Speaking to IANS on the budget, Rawal said people should not judge it based on stock market movements.

"The budget clearly reflects the government’s direction and long-term priorities," Rawal told IANS.

"Earlier budgets were mainly expected to offer tax relief, but over time reforms like GST have already provided such benefits. Now, the focus has shifted to strengthening the country’s economic structure," he added.

Rawal highlighted that India’s economy is growing at a healthy pace and the government’s main goal is to sustain this growth over the next two decades.

He said that after years of heavy infrastructure investment, the current phase is about consolidation and making systems stronger. This will help ensure stable and continuous economic progress.

He also pointed out the significant increase in capital expenditure, which has reached around Rs 12 lakh crore.

"While earlier investments were mostly in road construction, the government is now expanding its focus to logistics, inland waterways, rail corridors, and supply chain improvements," he noted.

Rawal said these steps will reduce costs, boost productivity, and support long-term development.

On fiscal management, Rawal praised the government for keeping the fiscal deficit target at 4.3 per cent. He said maintaining the deficit below 5 per cent shows strong financial discipline. Even in the face of global challenges, he believes the government is in a good position to manage its finances responsibly.

Another major focus of the budget, according to Rawal, is the formalisation of the economy. "By increasing thresholds under schemes like ESI and bringing more workers and businesses into the formal system, the government is reducing leakages and improving compliance," Rawal mentioned.

"This process is gradually integrating small and informal businesses, especially in rural areas, into a structured economic framework," he noted.