Union Budget 2026: Sustaining growth through tax simplicity, fiscal discipline, incremental reform

As we look ahead to the Union Budget 2026, the air is thick with anticipation and expert opinions on how best to navigate India’s economic trajectory. Leading the discourse is Dr. (CA) Sharad Kohli, a renowned Economist & Finance Expert, who offers a compelling roadmap for sustaining our economic momentum. His insights underscore the critical need for a balanced approach, focusing on pragmatic tax reforms, investor confidence, support for vital sectors, and unwavering fiscal responsibility.

Dr. Kohli’s vision for Budget 2026 isn’t about radical overhauls but rather a strategic, incremental evolution designed to reinforce existing strengths and address emerging challenges. Here are the key pillars of his recommendations:

1. Pragmatic Tax Simplification

The call for tax simplification is not new, but Dr. Kohli emphasizes a ‘pragmatic’ approach. This means streamlining processes, reducing compliance burdens, and making the tax regime more predictable and transparent for individuals and businesses alike. A simpler tax structure encourages greater participation, reduces litigation, and ultimately boosts revenue collection.

2. Investor-Friendly Reforms

To attract and retain capital, both domestic and foreign, the Budget must signal a clear commitment to investor-friendly reforms. This could include easing regulatory hurdles, providing clarity on long-term policy goals, and fostering an environment where investments can thrive without undue uncertainty. Such measures are crucial for driving job creation and technological advancement.

3. MSME Relief and Support

The Micro, Small, and Medium Enterprises (MSME) sector is the backbone of the Indian economy, employing millions and contributing significantly to GDP. Dr. Kohli advocates for targeted MSME relief, which might involve easier access to credit, extended support schemes, and measures to integrate them more effectively into global supply chains. Strengthening MSMEs is vital for inclusive growth.

4. Steady Fiscal Discipline

Perhaps one of the most critical aspects highlighted is the importance of steady fiscal discipline. While growth is paramount, it must not come at the cost of fiscal stability. Prudent spending, efficient resource allocation, and a commitment to narrowing the fiscal deficit are essential to maintain macroeconomic stability, control inflation, and ensure sustainable long-term growth.

In essence, Dr. Kohli’s recommendations for Union Budget 2026 paint a picture of a future where India sustains its growth trajectory not through grand, disruptive gestures, but through thoughtful, consistent, and well-executed policy increments. By prioritizing tax simplicity, investor confidence, MSME empowerment, and unwavering fiscal responsibility, Budget 2026 can indeed be a cornerstone for continued economic momentum and prosperity for all.

Source: Original Article