NEW DELHI: The Union Cabinet, led by Prime Minister Narendra Modi, approved the Union Budget for 2025 on Saturday, February 1st, ahead of its presentation by Finance Minister Nirmala Sitharaman in Parliament today. This will be Finance Minister' Nirmala Sitharaman's eighth consecutive budget.
With the budget announcement around the corner, several groups are hoping for measures that address their concerns. Households are expecting policies aimed at lowering the prices of everyday items. The youth are eager for announcements that will generate more employment opportunities, while the salaried class is hoping for some relief in the form of income tax concessions.
Expectations are high that the budget will strike a careful balance between fostering economic growth and maintaining fiscal policies. Taxpayers, in particular, are looking forward to potential changes in tax slabs under the new regime, with hopes for increased exemption limits and a higher standard deduction. There is even talk of making annual incomes up to Rs 10 lakh tax-free.
Many are also hoping for an increase in the standard deduction, which currently stands at Rs.50,000 under the old tax system and Rs.75,000 under the new one. On the fiscal front, the government is expected to stay on track with its plan to cut the fiscal deficit, aiming to bring it down from 4.9 percent in FY25 to 4.8 percent, and eventually to 4.5 percent in FY26.
A deay before the Cabinet’s approval, Finance Minister Sitharaman tabled the Economic Survey for 2024-25, which forecasts India’s GDP to grow at a rate between 6.3 and 6.8 percent in FY26. This growth, however, falls short of what is needed to reach developed nation status. Experts have called for deregulation and reforms in key sectors like land and labor to boost growth further.