There was enormous pressure, as India had just lost its spot as the fastest-growing major economy to China in the January–March quarter. There was a clamour for big-bang reforms. Given the many exigencies that India faced at that juncture, Modi’s new FM pick raised quite a few eyebrows in policy circles.
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Across the eight budgets that she brought, Nirmala Sitharaman not just steered the Indian economy out of a tight fiscal space, but also set it firmly on the road to the next level.
Today, India is in the Modi 3.0 phase. With ‘Viksit Bharat’ as the governing catchphrase, expectations are now high that the upcoming Budget will push India further along in its ambition of becoming a developed nation. But the groundwork for that moment has not been laid overnight. It has been built, Budget after Budget, across eight fiscally demanding years. So how did Sitharaman perform in her last eight Budgets?
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Commenting on the past eight Budgets, Sarbartho Mukherjee, Senior Economist at CareEdge Ratings, said, “Over the past eight Budgets, Finance Minister Nirmala Sitharaman has adopted a pragmatic approach that combines a long-term strategic vision for India’s growth with tactical measures to address near-term challenges. Less than a year into her tenure, she confronted the unprecedented economic disruption caused by the COVID-19 pandemic, which sharply curtailed economic activity and necessitated significant fiscal support.””To cushion the impact, the fiscal deficit was raised from the pre-pandemic level of 3.4% of GDP in FY19 to a peak of 9.2% in FY21. Since then, despite persistent global headwinds — including geopolitical conflicts such as the Russia–Ukraine war that led to sharp increases in global energy prices — she has remained focused on restoring fiscal discipline. Consistent consolidation, credible targets, and strict adherence to those targets have been defining features of her Budgets,” Mukherjee added.
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He further said, “Throughout her tenure, the Finance Minister has sought to balance fiscal consolidation with the need to sustain economic growth. The fiscal deficit has been gradually reduced along a clearly defined glide path without undermining economic recovery. At the same time, capital expenditure has remained robust, recording an average growth of around 21% since FY20. This sustained emphasis on capital spending reflects a focus on building long-term productive capacity and employment through strong multiplier effects. During the pandemic years, her Budgets also expanded support for welfare programmes, MSMEs, agriculture credit, and investments in healthcare and education. With the fiscal glide path set to conclude in FY26, she has outlined a roadmap to reduce the Centre’s debt-to-GDP ratio to around 50% by FY31. The calibrated pace of consolidation has additionally created room to support private consumption through direct tax rationalisation and off-budget GST rate reductions. Her focus on fiscal discipline has strengthened India’s economic resilience to deal with global headwinds.”
Here is a snapshot of the top reforms from the last eight Budgets presented by Finance Minister Sitharaman:
Budget 2019: A Cautious Beginning Amid Economic Stress
In her first Budget, Sitharaman sought to balance reform with restraint. The 2019 Budget set a divestment target of Rs 1.05 lakh crore, imposed higher tax surcharges on high-income earners and expanded corporate tax benefits. Incentives were announced for electric vehicles, housing and infrastructure, alongside an ambitious Rs 100 lakh crore investment plan spread over five years.
Also Read: Budget 2019-20: Fiscal discipline, structural reforms, a mega projects road map
Budget 2020: Resetting the Tax Structure
The 2020 Budget marked one of the most consequential shifts of Sitharaman’s tenure with the introduction of the new personal income tax regime. Sitharaman presented the Budget when Covid cases had started appearing but did not yet seem as menacing as they would become in the months ahead.
The Budget aimed to simplify taxation and boost disposable incomes at a time of economic slowdown. Income up to Rs 5 lakh was made tax-free, while rates were reduced across multiple slabs. The Budget also addressed broader economic challenges with proposals such as continued divestment, targeted incentives for infrastructure and housing and support for electric mobility.
It reflected an early recognition that reviving consumption would be critical to sustaining growth.
Also Read: Budget 2020-21: New tax regime, growth & welfare boost, fiscal prudence
Budget 2021: Budget Written in the Shadow of Covid
In 2021, the task before the finance minister was clear-cut. The Covid-19 pandemic reshaped fiscal priorities, and the Budget responded with a decisive push towards healthcare and infrastructure.
Sitharaman highlighted six pillars — health and wellbeing, infrastructure, inclusive growth, human capital, R&D, and minimum government and maximum governance. Healthcare spending was increased by 137% compared to the previous year, with a total allocation of around Rs 2 lakh crore, including Rs 35,000 crore for Covid-19 vaccines.
Infrastructure received significant attention as well, with an outlay of Rs 1.10 lakh crore for railways, a target of building 11,000 km of national highways, and Rs 1.4 lakh crore allocated for the Urban Swachh Bharat scheme over five years. The Jal Jeevan Mission (Urban) announced universal water coverage with an outlay of Rs 2.8 lakh crore over five years.
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Budget 2022: Infrastructure as the Growth Engine
As the economy emerged from the pandemic, the 2022 Budget placed infrastructure firmly at the centre of the growth strategy. Sitharaman announced plans to invest over Rs 1 lakh crore under the PM Gati Shakti programme. The Budget focused on logistics, transport, and connectivity while maintaining stable personal income tax slabs.
New measures included a 30% tax on virtual digital assets, Rs 19,500 crore for solar module manufacturing, and initiatives such as e-passports, digital banking units and a National Mental Health Programme. Employment generation, digital education, millet promotion and land record digitisation were also prioritised.
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Budget 2023: Capital Expenditure Takes the Lead
The 2023 Budget marked a turning point in scale. Capital expenditure crossed 3% of GDP, with around Rs 10 lakh crore earmarked for public investment — the highest ever at the time. Analysts viewed the move as a clear signal that the government intended to anchor economic recovery through sustained public spending.
The emphasis on capital creation was designed to crowd in private investment and ensure continuity in India’s cyclical recovery.
Also Read: Budget 2023-24: Record growth push, historic rail outlay, new tax regime becomes default
Budget 2024: Jobs and Skilling in Focus
With employment concerns taking centre stage, the 2024–25 Budget announced a Rs 2 lakh crore allocation for schemes targeting 4.1 crore youth. Sitharaman highlighted employment and skilling as among the government’s top priorities.
Three schemes under the Employment Linked Incentive programme were introduced, tied to EPFO enrolment, aimed at supporting first-time workers while incentivising employers. The Budget acknowledged that growth numbers alone were insufficient without broad-based job creation.
Also Read: Budget 2024-25: Nine priority areas, major focus on youth, tax tweaks
Budget 2025: Turning Inward to Sustain Growth
By 2025, global pressures had intensified, with India facing the impact of US tariffs under Donald Trump and slowing exports.
Sitharaman responded by pivoting decisively towards domestic consumption. The Union Budget 2025 overhauled income tax slabs under the new regime, increasing rebates and making income up to Rs 12 lakh tax-free.
For salaried taxpayers, the exemption effectively extended to Rs 12.75 lakh after standard deductions. The revised structure reduced the tax burden on middle-income earners and sought to stimulate spending at home, insulating the economy from external shocks.
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“Nirmala Sitharaman’s eight Budgets demonstrate a consistent commitment to fiscal prudence, structural reforms and strategic public spending to drive long-term economic growth, while remaining responsive to short-term challenges through pragmatic policy adjustments,” Mukherjee said.
As she prepares for her ninth Budget, the ground beneath India’s fiscal landscape already bears the imprint of those years of incremental change. Whether the ninth Budget lifts India decisively closer to ‘Viksit Bharat’ will be judged in hindsight. But the eight that came before it have already redrawn the contours of the country’s fiscal playbook — quietly, steadily and with an eye on endurance rather than applause.