Startup Originals Team
Union Finance Minister Nirmala Sitharaman has rejected criticism that the Union Budget 2026 burdens the middle class, stating that India’s economy is expanding steadily and the budget is designed to support long-term, sustainable growth rather than short-term populist measures. She said the government’s focus remains on building economic resilience, jobs, and productivity over the coming years.
Responding to Middle-Class Concerns
Addressing questions on whether the budget had offered enough relief to middle-income households, Sitharaman said the narrative that the middle class is being “crushed” does not reflect the broader economic reality. According to her, rising consumption, improving employment indicators, and sustained growth across sectors show that household demand remains strong.
She argued that targeted welfare measures, infrastructure investment, and support for job-creating sectors ultimately benefit the middle class more than temporary tax giveaways. “The economy is expanding, and that expansion creates opportunities and income growth,” she said.
Focus on Long-Term Growth Over Quick Fixes
The finance minister emphasised that Union Budget 2026 prioritises long-term economic growth rather than short-term stimulus. She noted that large allocations toward capital expenditure, infrastructure, manufacturing, and innovation are intended to strengthen the economy’s productive capacity.
Sitharaman said such investments may not deliver instant benefits but are essential for sustaining growth over the next decade. “We are building the foundation for future growth, not chasing momentary applause,” she added.
Capex, Jobs, and Economic Expansion
A central pillar of the budget is continued high government spending on infrastructure, including roads, railways, logistics, and urban development. The finance minister said this approach has a multiplier effect, generating employment, boosting private investment, and improving efficiency across the economy.
She pointed out that higher capital expenditure has already helped crowd in private investment in recent years and is expected to continue doing so. According to the government, this strategy supports job creation in construction, manufacturing, services, and allied sectors, indirectly strengthening middle-class incomes.
Balancing Fiscal Discipline and Welfare
Sitharaman also defended the government’s emphasis on fiscal discipline, stating that controlling deficits and debt is crucial to protecting long-term economic stability. She said unchecked borrowing could lead to inflation and higher interest rates, which would hurt households more than prudent budgeting.
At the same time, she highlighted continued support for vulnerable sections through targeted subsidies and welfare schemes, arguing that a balanced approach ensures both growth and social protection.
Criticism and Political Debate
Opposition parties and some analysts have criticised Union Budget 2026 for not offering immediate tax relief or higher consumption incentives for the middle class. They argue that rising living costs require more direct support.
In response, Sitharaman said the government remains attentive to public concerns but must also make responsible choices. She noted that structural reforms and growth-oriented policies ultimately create more durable benefits than short-term consumption boosts.
Looking Ahead
The finance minister said the success of Union Budget 2026 should be judged over time, as investments in infrastructure, manufacturing, and innovation begin to yield results. She expressed confidence that sustained economic expansion would translate into higher incomes and better opportunities for the middle class.
As the debate around the budget continues, Sitharaman’s defence underscores the government’s view that long-term growth, rather than immediate relief, is the most effective way to strengthen India’s economy and support its middle-income households.
