Key Highlights:
- Budget Timing: Finance Minister Nirmala Sitharaman will present the Union Budget 2025–26 on February 1 at 11 AM in the Lok Sabha.
- Key Focus Areas: Infrastructure, healthcare, education, and railways to dominate allocations; potential tax tweaks to boost middle-class spending.
- Live Telecast: Streamed on Sansad TV, Doordarshan, and official YouTube/X handles of the Finance Ministry.
- Economic Survey: Released on January 31, offering insights into India’s FY24 economic performance and FY25 growth projections.
- Modi Govt’s Third Term: Second budget of Modi 3.0 aims to balance fiscal discipline with populist measures ahead of key state elections.
New Delhi: As India awaits the Union Budget 2025–26, Finance Minister Nirmala Sitharaman is set to present the government’s economic roadmap on February 1, marking her 8th consecutive budget and the second under Prime Minister Narendra Modi’s third term. With expectations soaring among taxpayers, industries, and policymakers, this budget is poised to address critical sectors like infrastructure, healthcare, and railways while balancing populist demands and fiscal prudence.
Sector-Wise Expectations: Where Will the Money Flow?
- Infrastructure: Anticipated 12–15% hike in allocations for highways, PMAY (housing), and smart cities.
- Railways: Focus on Vande Bharat expansion, station modernization, and dedicated freight corridors.
- Healthcare: Increased funding for Ayushman Bharat and new AIIMS facilities.
- Green Energy: Subsidies for solar projects and EV manufacturing under the PLI scheme.
- Tax Reforms: Possible increase in Section 80C limits and adjustments to income tax slabs for middle-income groups.
Economic Survey 2024: Setting the Stage
Released on January 31, the Economic Survey 2023–24 will outline India’s growth trajectory, inflation trends, and fiscal health. Key projections include:
- GDP Growth: Estimated at 6.5–7% for FY25.
- Inflation: Targeted below 5%, with food inflation challenges flagged.
- Fiscal Deficit: Aim to reduce to 5.3% of GDP in FY25 from 5.9% in FY24.
How to Watch Budget 2025 Live
The budget speech will be telecast live across multiple platforms:
- TV: Sansad TV and Doordarshan.
- Digital:
- YouTube: Finance Ministry’s official channel.
- X (Twitter): Follow @FinMinIndia for real-time updates.
- Website: www.indiabudget.gov.in.
Middle-Class Hopes: Tax Relief and Affordable Housing
With rising inflation, salaried taxpayers demand:
- Higher Standard Deduction: From ₹50,000 to ₹75,000.
- Affordable Housing: Expanded eligibility for home loan interest deductions under Section 24.
- Cess Reduction: Cut in health and education cess from 4% to 3%.
Industry Demands:
- Corporate Tax Cuts: For MSMEs to spur job creation.
- PLI Expansions: Inclusion of sectors like toys and textiles.
Political Context: Populism vs. Fiscal Prudence
As the Modi government eyes 2024 state elections in Maharashtra and Haryana, expectations of populist announcements loom large. However, economists caution against overspending.
Rathin Roy, Economist, IMF:
“The budget must prioritize capital expenditure over subsidies to sustain growth. Fiscal discipline is non-negotiable.”
A Budget for Amrit Kaal
Budget 2025 arrives at a pivotal moment as India aims to cement its position as a $5 trillion economy. With global headwinds like rising oil prices and geopolitical tensions, Sitharaman’s fiscal strategy will need to strike a delicate balance between growth and stability.
Post-Budget Analysis: Experts will dissect allocations and policies on February 1, with markets likely reacting to infra and tax announcements.
