Finance Minister Nirmala Sitharaman is set to present the Union Budget today, outlining the government's economic plans for the financial year ahead.
This marks her eighth consecutive budget, a record in India's financial history. The budget comes at a crucial time, with the economy facing global uncertainties and domestic challenges.
Here are 10 key points to know before FM Nirmala Sitharaman's Budget 2025 speech.
1.) The Economic Survey, tabled earlier, predicts a growth rate between 6.3 and 6.8 per cent for the next financial year. While India remains one of the fastest-growing economies, the survey warns of a slowdown.
Experts suggest that sustained growth of nearly 8 per cent is needed to achieve the government’s long-term vision of making India a developed nation by 2047.
2.) Many are expecting changes in income tax slabs, particularly for the lower-middle class. The demand for tax relief has grown amid inflationary pressures.
Prime Minister Narendra Modi, in his customary pre-budget address, expressed hopes for prosperity, adding to expectations of financial relief for households.
3.) The budget is being presented at a time of global economic challenges. The United States, under its newly elected President Donald Trump, has warned of possible tariffs on countries like India.
This places additional pressure on the government to balance domestic economic measures while managing international trade concerns.
4.) Domestically, concerns over economic stability have intensified. India’s GDP growth has reached a four-year low, raising questions about policy measures needed to revive the economy. The government is expected to focus on boosting consumption and maintaining fiscal discipline.
5.) Karnataka Chief Minister Siddaramaiah has urged the Centre to ensure fair distribution of resources, highlighting the state’s contribution to the economy.
He has called for a more scientific and equitable approach to tax devolution. He criticised the Centre’s approach of treating states merely as revenue generators rather than responding to their financial challenges with fairness.
6.) The budget-making process has also come under criticism. Leader of the Opposition in Lok Sabha, Rahul Gandhi, alleged that Dalits, tribals, backward classes, and minorities have little representation in budget decisions.
7.) He pointed out that among the 90 officers involved in preparing the budget, only three are from the Other Backward Classes. He claimed that despite making up 50 per cent of the population, they would have minimal influence over financial decisions.
8.) Economists believe the government may announce policies to boost exports and encourage local manufacturing. Tariff reductions on key raw materials could be introduced to enhance the competitiveness of Indian industries.
There are also expectations of an expansion of the production-linked incentive scheme to support manufacturing.
9.) Deloitte India economist Rumki Majumdar has suggested that government spending is expected to increase in the coming months. She emphasised that the government will likely continue strengthening skill development initiatives and creating more job opportunities.
10.) The Budget Session will also see the introduction of several key bills. Among them are the Waqf (Amendment) Bill, the Banking Laws (Amendment) Bill, the Railways (Amendment) Bill, and the Disaster Management (Amendment) Bill. Other significant legislation includes the Oilfields (Regulation and Development) Amendment Bill, the Protection of Interests in Aircraft Objects Bill, and the Immigration and Foreigners Bill.
As Sitharaman presents the budget, all eyes will be on the government's fiscal policies and economic strategies. With high expectations from various sectors, the budget is expected to set the course for India's economic growth in the coming year.
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