Union Budget FY26: Shift from targeted subsidies to universal benefits

In FY21, subsidies were 3.82% of GDP, now down to 1.19%, reflecting a 40-basis-point annual contraction — no small feat. This decline, alongside reduced income tax, signals a shift from targeted benefits to broader economic impact. While subsidies aid lower-income groups, the focus now leans towards policies fostering overall growth and long-term financial stability.