New Delhi, Feb. 1 -- The Union budget for FY26 presented by finance minister Nirmala Sitharaman on Saturday sought to signal prime minister Narendra Modi administration's commitment to fiscal consolidation, infrastructure creation and support to states for building roads, highways and utilities.

A robust 20% growth in personal income tax achieved in FY25 helped Sitharaman to offer income tax relief to individuals under the new tax regime at the cost of Rs.1 trillion to the exchequer from FY26 onwards and yet balance spending and revenue receipts in FY26, both of which are projected to grow at 7.4% annually.

The budget projected a nominal GDP growth of 10.1% in FY26, which will swell the size of the economy to $4.1 trillion. Fiscal defic...