Economic Survey FY26: Strong Tax Collection Boosts Domestic Demand, India's Credit Rating Improves
Budget
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CNBC Awaaz•31-01-2026, 07:29
Economic Survey FY26: Strong Tax Collection Boosts Domestic Demand, India's Credit Rating Improves
- •Finance Minister Nirmala Sitharaman presented the Economic Survey ahead of the February 1 budget, highlighting India's robust domestic demand and capital formation in FY26.
- •The survey noted significant growth in tax revenue, with direct tax collection reaching 53% of the annual target by November 2025 and GST collections hitting all-time highs.
- •Government's capital expenditure sharply increased to nearly 60% of the budget allocation by November 2025, improving public spending quality.
- •Fiscal consolidation and investment are balanced, with capital expenditure's share in central government spending rising from 12.5% to 22.6% between FY20 and FY25.
- •India's credit rating improved, with S&P Ratings upgrading it to 'BBB' and CareEdge Global assigning a 'BBB+' rating, reflecting market confidence.
Why It Matters: Strong tax collection, increased capital expenditure, and prudent fiscal policy have boosted India's economy and credit rating.
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