🤡Finance Minister Nirmala Sitharaman is all set to present the first full Union Budget of Prime Minister Narendra Modi's third term at 11 am today. This will be Sitharaman's record eighth consecutive budget which is close to Morarji Desai who presented 10 budgets in total during his tenure as finance minister in 1959-1964, and four budgets between 1967-1969.
🐻Besides being an annual fiscal roadmap, a budget functions as a policy statement representing a government's goals and visions. Anticipations are high as the Union Budget 2025 is expected to uphold the aspirational vision for a ‘Viksit Bharat’ by 2047. Several key reforms are expected this time including potential transformative regulatory measures, sector-specific reforms, and initiatives aimed at enhancing the ease of growing business.
Budget 2025: Key Expectations
💃The Budget 2025 is widely expected to place an enhanced focus on the agriculture sector and potential tax reforms like phasing out of the old tax regime introduction of zero income tax for those earning less than rupees 10 lakh per annum. However, confirmation is awaited on this.
𓆉Another key focus area includes striking a balancing between fiscal consolidation and economic growth.
🔯The list of other prominent expectations include ‘industry’ status for the real estate sector and budgetary support for artificial intelligence (AI) development and adoption.
🤡Analysts and experts expect some tax rationalisation, export push, better implementation of capital spending plans and clear roadmap on structural reforms. They also see some expansion in the production-linked incentives, and increased allocation to some welfare schemes while continuing focus on infrastructure creation/upgrade.
♎Increased allocations to boost job creation and skills, lower customs duties on intermediaries and increase in agriculture investments are also high on the list of expectations. Measures for accelerating domestic demand and private consumption are also expected.
Economic Survey 2025: What Is It?
On Friday, January 31, Union Finance Minister Nirmala Sitharaman ♏presented the Economic Survey in Parliament providing a detailed analysis of the Indian economy.
🌃The Economic Survey is defined as an annual comprehensive document prepared and presented by the government ahead of the Union Budget. This document evaluates the state of the economy in the outgoing budget and also presents the outlook for the upcoming financial year.
⭕The report is divided into two parts. While Part A focuses on analysing economic performance with particular focus on macroeconomic indicators and fiscal trends, Part B highlights socio-economic issues such as education, poverty, climate change and outlook for GDP growth, inflation, and trade
♏The Economic Survey is prepared by the Economic Division of the Department of Economic Affairs in the Ministry of Finance under the supervision of the chief economic adviser.
Economic Survey: Key Points To Know
🦩As per the survey presented on Friday, India's FY26 GDP growth has been anticipated expected to be in the range of 6.3-6.8 percent amid global uncertainty. The growth is expected from agriculture and services.
🌞The report highlighted that global economy experienced a steady yet uneven growth in 2024 due to a slowdown in manufacturing sector.
🎀The survey also included factors such as geopolitical tensions, ongoing wars and trade policy risks as the prime causes behind global economic instability.
﷽The survey suggested that for the incoming year, India is expecting a "balanced outlook". Furthermore, the report highlighted that investment pick-up, improved consumer confidence, and corporate wage growth are much needed for economic growth.
🦹The survey also acknowledges China's dominance in the manufacturing and energy transition systems
