Budget 2025: What to expect Tomorrow based on FM’s Last Budget Speech?

FM will give her eighth Budget for 2025-26 on Saturday. The budget will be closely watched because it comes at a time when the economy is struggling and consumption is low.

Expectation From Budget 2025

Reetu | Jan 31, 2025 |

Budget 2025: What to expect Tomorrow based on FM’s Last Budget Speech?

Budget 2025: What to expect Tomorrow based on FM’s Last Budget Speech?

Finance Minister Nirmala Sitharaman will give her eighth Budget for 2025-26 on Saturday. The budget will be closely watched because it comes at a time when the economy is struggling and consumption is low. FM Sitharaman laid out a blueprint for ‘Viksit Bharat’ in the last Budget 2024-25 and outlined a number of projects that will have an influence on future budgets. Here’s what we expect from the Union Budget 2025-26, following FM Nirmala Sitharaman’s last Budget Speech in 2024-25.

Finance Minister Nirmala Sitharaman declared nine priorities as part of the blueprint for the pursuit of ‘Viksit Bharat’ while presenting the last Budget 2024-25, stating that “subsequent budgets will build on that”.

Nine Priorities for Viksit Bharat and Future Budgets

The nine priorities are ‘productivity and resilience in agriculture’, ’employment and skilling’, ‘inclusive human resource development and social justice’, ‘manufacturing and services’, ‘urban development’, ‘energy security’, ‘infrastructure’, ‘innovation, research and development’, and ‘next generation reforms’.

“Subsequent budgets will build on these, and add more priorities and actions,” Sitharaman stated on July 23, 2024, while delivering the last Budget 2024.

As a result, it will be an important issue to watch for in the next Budget on Saturday.

Job Schemes in Five Years

As an additional component of the “Budget Theme,” she stated “I am happy to announce the Prime Minister’s package of 5 schemes and initiatives to facilitate employment, skilling and other opportunities for 4.1 crore youth over a 5-year period with a central outlay of Rs.2 lakh crore.”

It will be crucial to watch out for following initiatives to boost employment in the country.

Structure of Customs Duty

Sitharam promised customs rate reduction on various commodities, including mobile phones, chargers, and cancer medications, in the last Budget Speech in 2024. Apart from that, she had advocated a full review of the customs tariff structure within six months.

“In Budget 2022–23, we lowered the number of customs duty rates. I propose to conduct a comprehensive review of the rate structure over the next six months to rationalize and simplify it for ease of trade, removal of duty inversion, and reduction of disputes,” she stated on July 23, 2024.

So, a revision of the customs tariff structure is greatly anticipated in this year’s budget 2025, which will be released on February 1, 2025.

Income Tax Act Review

While incentivizing the new income tax regime by increasing the standard deduction limit from Rs.50,000 to Rs.75,000 and the income tax rebate limit from Rs.5 lakh to Rs.7 lakh, FM Nirmala Sitharaman proposed in the last Budget 2024-25 to comprehensively review the Income Tax Act within the next six months.

According to reports, the government is reportedly planning to introduce the new income tax bill during the budget session of Parliament.

Therefore, any relaxation or statement on the income tax front will be closely observed, especially given the rising desire for lowering the tax burden on individuals in order to encourage economic consumption.

Economic Consolidation Path

The previous Budget projected a budget deficit of 4.9% of GDP for the current financial year 2024-25. FM Sitharaman has promised to keep it “below 4.5 percent next year”.

“The budget consolidation path I proposed in 2021 has served our economy well, and we hope to have a deficit of less than 4.5% next year. The government is determined to continuing the course. From 2026-27 onwards, our goal will be to keep the budget deficit consistent so that the Central Government debt as a percentage of GDP declines,” she added.

Though economists and analysts desire tax cuts regardless of the impact on the budget’s deficit objective for this year, market participants will watched it for future evaluations.

Finance Minister will present the Budget 2025 on Feb 1, 2025 and will be a watch out session for common people out there hoping for great things.

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