Union Budget 2025: The budget 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 Budget 2025: Finance Minister Nirmala Sitharaman is set to present the first full Union Budget of the Modi government’s third term today. The Budget 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.
The Budget speech by FM Sitharaman will be delivered in the Lok Sabha at 11 am on February 1. She will outline budgetary allocations and revenue expectations for the upcoming financial year. After her speech in the lower house, the Budget documents will be tabled in the Rajya Sabha later.
Interestingly, this will be FM Sitharaman’s eighth Budget presentation in Parliament and her second under the Narendra Modi-led NDA 3.0 government. So far, she has delivered six annual budgets and two interim budgets, surpassing previous finance ministers such as Manmohan Singh, Arun Jaitley, P Chidambaram, Yashwant Sinha, and Morarji Desai in terms of total budget speeches.
Taxpayers expecting changes in tax slabs
One of the most anticipated elements of the budget is the potential tax relief for individuals and businesses. Taxpayers are hoping for adjustments to tax slabs under the new tax regime, with expectations of higher exemption limits and standard deductions. There is a push for making annual income up to Rs 10 lakh tax-free.
Additionally, there is demand for an increase in the standard deduction limit, which is currently set at Rs 50,000 under the old tax regime and Rs 75,000 under the new tax regime.
GDP growth rate projected to fall 6.4 per cent
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.
