Vinayaka Mission’s School of Economics and Public Policy (VSEP), Chennai, a part of Vinayaka Mission’s Research Foundation (Deemed to be University), organized a panel discussion on the Union Budget 2025-26 on 12-02-2025. The event brought together distinguished economists, policymakers, and industry leaders to analyze the budget’s implications for economic growth, social development, and fiscal sustainability.
The session commenced with a welcome address by Dr. Debdulal Thakur, Dean of VSEP, who introduced the panelists: Dr. Arvind Mayaram (Former Finance Secretary, Government of India), Prof. Saumen Chattopadhyay (Jawaharlal Nehru University), Prof. M. Suresh Babu (Director, Madras Institute of Development Studies), Ms. Avani Kapur (Founder, Responsive Governance), and Dr. Kalyan Goswami (Director General, AgriChem Federation of India).
Delivering the inaugural address, Dr. Arvind Mayaram highlighted the evolving nature of India’s budget-making process. He noted that while the budget has transitioned from being a mere financial statement to a comprehensive policy document, key concerns remain. He pointed out that India’s GDP growth has averaged below 6% since 2014, with a decline in private investment and household consumption. He stressed the need for policies that promote sustainable economic growth while addressing rising income inequality. Dr. Mayaram further observed that foreign direct investment (FDI) inflows have declined, and India’s global export share has stagnated. He argued that the budget should have introduced stronger measures to enhance global competitiveness, attract foreign investments, and boost exports.
Professor Suresh Babu analyzed the budget’s efforts to boost private investment, noting that while government capital expenditure (CapEx) has supported economic growth, private sector investment remains sluggish. He emphasized the need for policy reforms, deregulation, and a simplified compliance framework to attract private capital.
A key point of discussion was the impact of the budget on employment and social welfare. Ms. Avani Kapur highlighted the underfunding of education, healthcare, and social security programs. Despite the government’s focus on infrastructure, human capital development has received inadequate financial attention. She noted that declining real expenditure in social sectors poses challenges to addressing poverty, inequality, and healthcare access.
Professor Saumen Chattopadhyay criticized the limited impact of the budget’s tax relief measures. He pointed out that while tax exemptions benefit middle-income households, they do little to stimulate broader demand growth. Citing the World Inequality Report, he pointed out that income disparities have widened, with the top 10% of the population controlling over 77% of the nation’s wealth and the wealthiest 1% of the Indian population owns 53% of country's wealth
Dr. Kalyan Goswami underscored the need for greater financial support for agricultural and rural employment schemes. He emphasized that while rural infrastructure development is commendable, rising employment in agriculture reflects a lack of industrial and service sector jobs rather than a positive transformation.
A major concern raised during the session was fiscal sustainability. While the budget projects a fiscal deficit of 4.4%, panelists questioned the feasibility of revenue projections given the expected economic slowdown. Dr. Mayaram stressed the importance of tax reforms, better revenue mobilization, and efficient government spending to maintain fiscal discipline without compromising social welfare.
The panel concluded that the Union Budget 2025-26 presents a mixed outlook. While it prioritizes infrastructure and fiscal stability, concerns remain over private investment, employment generation, and equitable resource distribution. The discussion underscored the importance of long-term policy reforms and investment in human capital to ensure inclusive growth.
The event concluded with a vote of thanks by Ms. Faith Ann Enos, a first-year B.Sc. Economics (Hons. with Research) student at VSEP. The discussion reinforced the role of informed policymaking in shaping India’s economic future.