NDA 3.0 must use political capital to implement structural reforms in upcoming Budget: D. Subbarao

Former RBI Governor Subbarao urges NDA 3.0 government to implement structural reforms in budget for growth and job creation.

The NDA 3.0 government must use its enormous political capital to implement 'politically difficult' structural reforms in the upcoming budget to promote growth and job creation, former RBI Governor D. Subbarao said on Thursday (January 23, 2025).

The Union Budget for 2025-26, to be presented by Finance Minister Nirmala Sitharaman on February 1, comes amid global economic uncertainties and moderating domestic growth.

"This is the first full budget of the NDA-III government and it must use its enormous political capital to implement politically difficult structural reforms," Mr. Subbarao told PTI in an interview.

Further, he said that the primary objective of the budget is to put the economy on a sustainable high-growth trajectory.

"But mere growth will not do. We need to ensure that the benefits of growth are widely shared which is to say that we need to focus on reducing inequality," Mr. Subbarao added.

According to him, the huge consumption base of the bottom half of India's population is its biggest growth driver.

"The only sustainable way to raise consumption of the bottom half is through job creation," Mr. Subbarao said, adding that if they earn more, they will spend more which will in turn spur more production, more jobs and higher growth.