Budget 2025: Finance Minister Nirmala Sitharaman is set to present her eighth consecutive Union Budget on Saturday, marking a record tenure in handling the nation’s finances. With inflationary pressures mounting, the salaried class anticipates significant relief in income tax rates and slabs. On Friday, Sitharaman finalised the Budget document, completing the final touches ahead of the crucial announcement.
The Union Budget for the financial year starting April 1 is expected to focus on reviving economic growth while maintaining fiscal discipline. The government is likely to introduce measures to boost consumption and keep the fiscal deficit in check.
The Economic Survey, presented by Finance Minister Nirmala Sitharaman in Parliament, predicts that India’s economy will grow between 6.3% and 6.8% in the financial year 2025-26. While India remains one of the fastest-growing economies, the report warns that growth is slowing down. To reach the government’s goal of making India a developed nation (Viksit Bharat) by 2047, the economy needs to grow at nearly 8% every year. The survey suggests that more efforts are needed to achieve this target.
There is a strong demand for changes in income tax slabs, especially for the lower-middle class. Expectations have risen after Prime Minister Narendra Modi invoked the Goddess of Wealth (Lakshmi) in his cutomary address on Friday, expressing hopes for prosperity for the poor and middle class. Experts anticipate some tax relief to ease inflationary pressure on households.
The Modi government’s second full budget in its third term comes at a time of rising global uncertainties and slowing economic growth. India’s GDP growth has hit a four-year low, adding to concerns about economic stability.
Complicating matters further, newly elected US President Donald Trump has warned of possible tariffs on countries like India. This adds pressure on the government to balance domestic growth measures while navigating global trade tensions.
Karnataka Chief Minister Siddaramaiah urged the Centre to recognise the state’s contribution and ensure ‘just and proportional’ resource distribution. “Instead of treating states merely as revenue-generating units, the Centre must respond to their financial challenges with fairness and empathy. When it comes to resource allocation, including tax devolution, the Centre must follow scientific and equitable standards,” he said in a statement.
Leader of the Opposition in Lok Sabha, Rahul Gandhi, criticized the budget-making process, alleging a lack of representation for Dalits, tribals, backward classes, and minorities.
He pointed out that when the finance minister presents the Budget, no one from these communities will be in the official photo. “Tomorrow, 90 officers will prepare the Budget. Out of them, only three are from the OBC category,” he said. Gandhi claimed that despite OBCs making up 50% of the population, they will have little say in budget decisions. “If ₹100 is allocated, these officers will decide only ₹5,” he added, as quoted by ANI.
According to analysts and experts, the government may introduce policies to support exports and encourage local manufacturing. Tariff cuts on key raw materials and intermediaries could be announced to make Indian industries more competitive. Expansion of the production-linked incentive (PLI) scheme is also expected.
Rumki Majumdar, Economist, Deloitte India told PTI, “With the conclusion of the Indian elections, we anticipate that government spending will pick up, supporting growth in the coming quarters of FY2025,” she said, adding that the government is expected to maintain its focus on strengthening skill development initiatives and creating more job opportunities.
A total of 16 Bills are listed for the Budget Session, including the Waqf (Amendment) Bill, Banking Laws (Amendment) Bill, Railways (Amendment) Bill, Disaster Management (Amendment) Bill, Oilfields (Regulation and Development) Amendment Bill, Protection of Interests in Aircraft Objects Bill, and Immigration and Foreigners Bill.
