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By:

Sayli Gadakh

11 November 2025 at 2:53:14 pm

India's Balance Sheet and the Middle-Class Reality

A strong national balance sheet ultimately strengthens household balance sheets. On budget mornings, millions of middle-class families across India do the same mental math: Will income tax fall? Will daily life become cheaper? Can we save more this year? The Union Budget is often reduced to these immediate questions. But if we step back and read Budget 2026 the way a chartered accountant reads a balance sheet, a deeper story emerges—one about the country’s financial strength, future earning...

India's Balance Sheet and the Middle-Class Reality

A strong national balance sheet ultimately strengthens household balance sheets. On budget mornings, millions of middle-class families across India do the same mental math: Will income tax fall? Will daily life become cheaper? Can we save more this year? The Union Budget is often reduced to these immediate questions. But if we step back and read Budget 2026 the way a chartered accountant reads a balance sheet, a deeper story emerges—one about the country’s financial strength, future earning capacity, and the sustainability of its growth. National Financial Statement A company’s balance sheet shows what it owns, what it owes, what it earns, and how it invests. The Union Budget does the same for the nation. Capital expenditure on infrastructure, digital public platforms, manufacturing, the energy transition, and logistics forms the asset side of India’s balance sheet. These are not routine expenses; they are long-term investments meant to generate jobs, improve productivity, and attract private investment. When highways reduce travel time, freight corridors cut logistics costs, and digital systems make compliance seamless, the economic benefit eventually reaches the middle class — through better jobs, higher business efficiency, and a better quality of life. Debt Is a Concern — But Also a Tool The fiscal deficit and rising public debt often dominate headlines. But in finance, borrowing is not inherently negative. The real question is: is the money creating assets or merely funding consumption? Budget 2026 continues its emphasis on capital expenditure, signalling that debt is being used to build long-term economic capacity. It is the equivalent of taking a home loan to buy a house, not a personal loan to fund daily expenses. This distinction is critical for India’s financial credibility and for keeping inflation and interest rates under control — two factors that directly shape EMIs, savings, and household budgets. Structural Shift in Taxation Another significant trend is the move toward widening the tax base instead of raising tax rates. Technology-driven compliance, data integration, and simplified systems are making taxation more transparent and efficient. For honest taxpayers, this is a long-term positive. A wider base means the burden is more evenly distributed and the system becomes fairer. Spending: Consumption vs Wealth Creation In personal finance, we are advised to spend less on consumption and more on asset creation. Governments face the same challenge. Budget 2026 walks this tightrope by continuing welfare support while keeping a strong push toward infrastructure and economic expansion. This balance is essential. Welfare sustains the present; capital expenditure builds the future. What It Means for the Middle Class The impact may not always be immediate, but it is deeply structural. Likely Positives * Better infrastructure leading to lower logistics and travel costs * Increased formal job creation through manufacturing and services growth * More digital and simplified financial compliance * Greater long-term economic stability, supporting income growth Areas Where Costs May Rise * Consumption linked to luxury or non-essential goods * Sectors where import dependence remains high * Items affected by rationalisation of subsidies or duty restructuring The Real Benefit: Stability and Opportunity While headline tax relief may be limited, the larger gain for the middle class lies in macroeconomic stability. Controlled inflation, stable interest rates, higher capital formation, and sustained growth create an environment where salaries rise, businesses expand, and investments perform better. In other words, a strong national balance sheet ultimately strengthens household balance sheets. Credibility of the Numbers Matters In accounting, projections are only as good as the assumptions behind them. GDP growth estimates, revenue targets, and disinvestment numbers must be realistic. Fiscal discipline enhances India’s global credibility, attracts investment, and keeps borrowing costs in check. This directly affects home loan rates, education loan affordability, and returns on savings. Why This Budget Is About the Long Term Budget 2026 does not appear designed for short-term applause. Instead, it reflects a strategy focused on capacity creation, formalisation of the economy, and sustained growth. That may not deliver instant gratification, but it strengthens the foundation on which future income and employment will grow. The Final Balance For a chartered accountant, the principle is simple: financial health is not judged by one year’s profit but by the strength of the balance sheet. The same applies to a nation. Budget 2026 may not dramatically change monthly tax outflows for every salaried individual, but it aims to build an economy where incomes are more secure, opportunities are wider, and growth is sustainable. In the long run, that is the kind of balance sheet every middle-class household benefits from — even if the impact is not visible the very next morning. (The writer is a Chartered Accountant based in Thane. Views personal.)

Bad Roads, Ugly Politics


The pathetic state of roads in Mumbai city as well as its suburbs has made daily commute a dangerous affair. The residents are miffed with the BMC over its lackadaisical attitude. Mumbaikars tweet photos, post videos to grab attention, but everything is in vain. Who cares for the common people. Backbreaking journeys have become part and parcel of life. Political leaders are busy mud-slinging.


This year the monsoon took a break after almost four and half months. During this time some of the roads virtually became non commutable. It may be recalled that the Chief Minister Eknath Shinde first announced to make Mumbai roads pothole free.


Its almost two years now the BMC has concretised only 9 percent of roads it planned to concretise. This decision was taken when it came to light that due to the properties of bitumen in asphalt roads, potholes are a regular occurrence due to contact with water during monsoons.


Hence, to solve the problem of potholes, the corporation has adopted a policy of cement concreting of 6-meter-wide roads in phases. The decision was taken but the dilly-dallying affair made things more difficult.


Mumbai’s traffic does put a lot of strain on roads which is not the case in the other developed countries. Second most important aspect is concretisation of roads is done partly and in phases.


The worst problem which is faced is repeated digging for cables and drainage, which weakens the roads. Above all corruption in BMC makes matters worse as a result everything comes to grinding halt.


According to experts, repairing potholes is a reaction with symptomatic treatment. By and large we are dispensing superficial treatment without addressing the root cause. The long-term solution will be to have roads with no potholes but what we need is the means and technology to achieve this. But for this political will is necessary which we lack on every step.


Mumbaikar’s are convience that corruption in the municipal corporation is the main reason. Contractors have had a monopoly over the last 20 years and this is the reason why reputed companies never come ahead for these projects.


As a result, in the name of attendance and repair, the BMC does shoddy work. Crores are spent but the end result is nothing. The BMC is not paying attention to the crust. If the crust is weak, potholes will see an increase. Without any thought or technical know-how, potholes are filled with cold mix.


This is the reason why the city and suburbs continue to have craters on the roads.


Craters, a serious threat to the safety and security of people. Mumbaikars fade up from their repeated visits to orthopedic surgeons.


They are in a mood to teach a proper lesson to those who were at the helm of the affairs.

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