New Delhi, Jan 31 (PTI) Finance Minister Nirmala Sitharaman on Friday gave final touches to the first full Budget of Modi government's third term that is expected to balance the aspiration of the middle class for tax cut and needs of the economy to boost growth.

Sitharaman will on February 1 present a record eighth consecutive Budget that is expected to contain measures to shore up weakening economic growth and ease the burden on the middle class struggling with high prices and stagnant wage growth while being fiscally prudent.

"Union Minister for Finance and Corporate Affairs Smt. @nsitharaman interacts with the Secretaries and the senior officials involved in the Budget making process @FinMinIndia while giving final touches to the Union Budget 2025-26 at her office in North Block, in New Delhi, today," the finance ministry said in a post on X.

Minister of State for Finance Pankaj Chaudhary also participated in the meeting, it said.

The Budget will come in the backdrop of the GDP growth rate projected to fall to 4-year low of 6.4 per cent in the current financial year, close to its decadal average.

The Economic Survey 2024-25 tabled by the Finance Minister in both Houses has estimated India's GDP growing in the range of 6.3-6.8 per cent in FY26, much lower than what is needed to become a developed country, and requires deregulation and reforms in areas like land and labour to stimulate growth.

It indicated that India's world-beating growth is moderating and more needs to be done to achieve the near 8 per cent annual rate required to achieve the Viksit Bharat target by 2047.

The 6.3-6.8 per cent growth rate in the 2025-26 financial year compares to an estimated 6.4 per cent growth in the current year ending March 31 -- the weakest since the pandemic -- and 8.2 per cent in the 2023-24 financial year. PTI DP ANZ TRB

Budget balancing tax relief with fiscal prudence to ease household burdens while signalling structural reforms for growth. The Budget under preparation seeks to balance middle class tax relief with fiscal prudence by deploying targeted measures to ease household burdens while restraining overall government spending. Against a backdrop of slowing GDP growth, the Economic Survey recommends supply side deregulation and structural reforms in land and labour to revive investment and productivity, indicating the Budget will combine short term support with signals favoring longer term reform.