Economists Advise PM Modi on Budget 2026: Focus on Fiscal Health, Savings & Atmanirbhar Bharat

• Economists met PM Modi to discuss Budget 2026, offering suggestions on fiscal pressure, declining savings, and Atmanirbhar Bharat.
• Advised returning to the FRBM framework and gradually reducing public expenditure to 3% to boost private sector financing.
• Emphasized initiatives for climate finance, digital infrastructure, high-tech education, and AI skills for Atmanirbhar Bharat and Viksit Bharat.
• Expressed concern over declining household financial savings (from 10-10.5% to 7-7.5% of GDP), warning of impacts on government/private sector financing and bond yields.
• Highlighted the rising share of interest expenditure (25-28% of total spending) in the government's budget, posing future financial challenges.

Why It Matters: Economists urged PM Modi to prioritize fiscal discipline, address declining savings, and boost key sectors for Budget 2026.