The Impact of the Union Budget on Economic Growth

The Union Budget is a key fiscal instrument through which governments influence economic growth, income distribution, and macroeconomic stability. This study examines the impact of the Union Budget on economic growth by analyzing how budgetary decisions related to government expenditure, taxation, and fiscal deficit affect major economic indicators such as GDP growth, employment, inflation, and investment. Using scenario-based and simulation-driven analytical approaches, the research evaluates alternative fiscal policy outcomes under varying budget assumptions. The findings indicate that capital expenditure and targeted tax reforms significantly stimulate economic growth by boosting aggregate demand and private investment. However, excessive fiscal deficits and inflationary pressures can weaken long-term growth prospects. The study highlights the importance of balanced fiscal planning that promotes growth while ensuring economic stability, offering valuable insights for policymakers and researchers