Budget 2025 Financial News

Nirmala Sitharaman along with her team is working for the preparations of Union Budget 2025. Among the key focus areas could be India’s semiconductor industry which is undergoing a transformation currently.

India Budget: The need to reignite India’s economic growth to 7-8% took center stage at a high-level pre-Budget meeting between Prime Minister Narendra Modi and leading economists on Tuesday. The discussions, held as part of pre-Budget consultations, focused on strategies to maintain growth momentum amidst global economic uncertainties and position India on track to achieve developed nation status by 2047.

Budget 2025: Economists pitched for reduction in income tax rates and customs tariff, support measures to aid exports, targeted interventions for skilling and improving farm productivity while continuing a capex push in the upcoming budget.

Nirmala Sitharaman prepares to present the Union Budget for 2025 in February, the Confederation of Indian Industry (CII) has put forward a compelling case for reenergising India’s Priority Sector Lending (PSL) framework.

Subscribe to enjoy similar stories. Finance minister Nirmala Sitharaman is set to present her second comprehensive budget after the 2024 general elections. The budget proposals are expected to focus on the ongoing theme of helping India transition to the envisioned "Viksit Bharat" of “Amrit Kaal." Hence, the focus will be on employment generation, skill development, and providing relief to a large mass of people distressed by inflation, with the overall objective of pushing up the GDP growth rate.

Union Budget 2025, anticipation is building across sectors. Personal finance enthusiasts and taxpayers alike are curious about what the Budget proposals will mean for their pockets. For this week’s cover story, we reached out to industry experts, tax professionals and financial advisers to know what they want to see in the Finance Bill 2025. Some of these expectations, such as a separate deduction for life insurance, lower tax on annuities and higher tax exemption for senior citizens, are longstanding demands and are unlikely to be fulfilled. However, North Block may find some other suggestions worth considering. For instance, one expert has suggested that taxpayers be rewarded with a group life insurance linked to the taxes they pay. As little as 1% of the tax paid by an individual can go into paying the premium of a group insurance cover equal to five times the tax paid. Another expert has suggested steps that could make the NPS more attractive to investors. The ultra low-cost scheme has everything that one looks for in a pension plan, but it is still not the preferred investment vehicle for retirement planning. Perhaps more tax benefits are needed to push people towards a scheme that can help them retire in comfort.

The Centre has also proposed an additional `5,000 crore incentive under the scheme to encourage urban planning. A set of guidelines for availing of loans under this window has been circulated to state chief secretaries, the officials said. This follows an assurance by Union finance minister Nirmala Sitharaman to state finance ministers at Friday’s prebudget discussions. The Scheme for Special Assistance to States for Capital Investment (SASCI) provides financial assistance to states through the 50-year, interest-free loan for capital investment projects.

Nirmala Sitharaman, Punjab and Kerala have requested for special financial packages among other demands by states, reported ETNow quoting its sources. Additionally, states have demanded higher allocation for 50 year interest free loans, request for more flexibility in the Special Assistance for Capital Investment scheme under this category. «States urged for an increase in borrowing limits to support fiscal activities and highlighted the need for state-specific road development projects,» said sources, according to the ETNow report.

fiscal discipline by reducing the fiscal deficit, achieving fiscal stability, and so much more.

Nirmala Sitharaman as she prepares to present the Union Budget 2025. The trade deficit, driven by high import bills and fluctuating export growth, demands targeted interventions to ensure sustainable economic growth. India’s trade deficit in November widened to an all-time high of $37.84 billion from $27.1 billion in, which has put some pressure on the local currency. This year, the Indian Rupee often traded at around record lows against the US dollar.

India Budget: As India prepares for Budget 2025, retailers are calling for measures that could transform the sector, including low-interest financing, tax relief, and a faster rollout of the National Retail Policy. The Retailers Association of India (RAI), in its pre-budget memorandum, urged the government to use the Union Budget for FY25-26 as a platform to address structural gaps, boost consumption, and improve ease of doing business. These changes, the RAI stated, would bolster consumer sentiment and support growth in the retail sector. A key demand from retailers is affordable financing. RAI highlighted the need for the government to announce lower interest rates specifically for retail businesses in the budget. “There is a need to provide lower interest rates to the retailers through the special announcement in the budget to assure easier financing for the retail businesses,” RAI stated. The association proposed the creation of a special fund, facilitated by the Small Industries Development Bank of India (SIDBI), to help independent retailers across the nation. This scheme could provide low-cost loans and relaxed regulatory guidelines to millions of small businesses, addressing a critical gap in financing options.

Finance Minister Nirmala Sitharaman is likely to present the annual budget 2025, her eighth consecutive Union Budget, on February 1. The annual budget details the planned expenditures and revenues for the fiscal year, which runs from April 1 to March 31. Expenditures cover areas such as public welfare programs, imports, military funding, salaries, pensions, and debt interest. Revenue is generated through taxes, public sector enterprises, government borrowing via bonds, and other sources.

Union Budget 2025 set to be presented in February, it’s a great time to dive into the concept of government borrowing and how it connects to the fiscal deficit.

Union Budget 2025 approaches, set to be unveiled in February, it’s a good time to understand the concept of strategic disinvestment and how it differs from disinvestment. Here’s a simple breakdown:

Resources have to be used to uplift underprivileged sections of society, ensure financial inclusion, reduce regional disparities, strengthen defense capabilities, provide quality education, and much more. It then becomes essential for a well-planned budget for any government to achieve economic stability and growth.

Finance Minister Nirmala Sitharaman is likely to present the Budget for FY 2025-26 in the Parliament on February 1, 2025. Prior to the presentation, the Ministry of Finance will publish the Economic Survey, which is followed by a press conference addressed by the Chief Economic Advisor and other senior officials of the Finance Ministry. The big theme for the upcoming survey will be deregulation, or the process of letting go of regulations in some spheres, Chief Economic Advisor V Anantha Nageswaran said on December 6.

Union Budget 2025 approaches, leading experts are calling for a significant increase in infrastructure spending to catalyse India's economic growth. The government is urged to go for an 30% annual rise in infrastructure allocations, with demands for the upcoming budget to push capital expenditure to ₹18 lakh crore from last year’s ₹11.1 lakh crore base. Annual increase in capital expenditure is crucial to reversing GDP slowdown and achieving the nation's ambitious economic goals. A robust budget allocation and proactive private-sector participation will be pivotal in ensuring sustainable and inclusive growth.

Budget 2025: Every year, the Department of Economic Affairs in the Ministry of Finance prepares the Union Budget, which is then presented by the Finance Minister. The Budget which is tabled annually serves as a financial plan for the country and lays out the estimated earnings and expenditures of the government for the upcoming fiscal year. Here are the five essential steps involved in the formation of the Union Budget: Initial Processes: The process starts approximately six months before the Budget is presented. The Finance Ministry releases Budget Circulars to the relevant ministries and departments, providing essential instructions and guidelines. These circulars are then circulated among disbursing and field officers, who provide information about their department’s financial expenditures, receipts for the current and previous fiscal years, and their financial needs for the upcoming fiscal year.

Revenue Deficit: The shortage of enough funds with government to maintain its day-to-day affairs is known as revenue deficit. This happens when total revenue expenditure crosses total revenue receipts, leading to a revenue deficit. To work through the revenue deficit, the government typically resorts to borrowing, divestments, and may also introduce new taxes or raise existing ones to bridge the gap in revenue. Fiscal Deficit When the Centre spends more money than it receives, the negative balance is known as fiscal deficit. The number is one of the most important figure that is observed during the Budget. The size of the deficit may affect growth, price stability, cost of production, and inflation. Additionally, in case of high fiscal deficit, a country's rating is also impacted. On the other hand, when there is an increase in the fiscal deficit, there is a boost to a sluggish economy by giving more money to people who can then buy and invest more.

Sanjay Malhotra from the Ministry of Finance in New Delhi to the Reserve Bank of India in Mumbai has left a key position vacant, just seven weeks before Finance Minister Nirmala Sitharaman is set to present the Union Budget. This development poses a unique challenge as the government has yet to announce Malhotra's successor for a role that demands extensive expertise in both direct and indirect taxation. Historically, the government has refrained from extending terms of finance officials even in the crucial lead-up to the budget. The vacancy now highlights the delicate balance required to ensure seamless coordination within the finance ministry, which comprises six departments—Revenue, Expenditure, Economic Affairs, Financial Services, DIPAM, and Public Enterprises. Of these, Revenue, Expenditure, and Economic Affairs play critical roles in shaping the Union Budget. This year's scenario is further complicated by recent changes in leadership. DIPAM Secretary Tuhin Kanta Pandey, now serving as the Finance Secretary due to his seniority, is juggling multiple responsibilities, including overseeing the Department of Public Enterprises and the Department of Personnel. For Expenditure Secretary Manoj Govil and Financial Services Secretary M. Nagaraju, the upcoming budget will be their first experience in such a high-stakes exercise.