“The choice of debt to GDP ratio as the fiscal anchor is in line with current global thinking. The fiscal deficit will be principally funded out of net borrowings of Rs 11.7 trillion, which is going up by just 3.6%. This tax was introduced by Rajiv Gandhi in the budget of 1986 with the objective of taxing zero-tax companies. But the setoff of MAT credit will be restricted to 25% of the tax liability in the new regime. Investors have also been hugely disappointed that there are no tax breaks for them in this budget.

Source: The Telegraph February 02, 2026 16:25 UTC