New Delhi, Feb. 2 -- If 2025 was about putting money in the hands of the common people through large-scale and much-celebrated cuts in both direct and indirect taxes, the new year appears to be about its after-effects-on the government's fiscal math, not so much on consumption-led growth wheels.

Several figures point towards a lack of optimism in the economy. Firstly, the government believes that GDP, in nominal terms, will grow 10% during fiscal year 2027 (FY27), the lowest budget projection since the pandemic-hit FY21. While this will be better than the 8% growth estimated in FY26, the truth is that a large part of this increase could simply be attributed to inflation climbing back to normal from ultra-low levels.

Secondly, the Centre...