Sat Feb 01 03:21:31 IST 2025: ## India Awaits Union Budget 2025-26: Tax Cuts and Economic Growth on the Agenda

**New Delhi, January 31, 2025** – Finance Minister Nirmala Sitharaman will present her eighth consecutive Union Budget on February 1st, 2025, a significant milestone surpassing the previous record held by Morarji Desai. The budget, the second full budget of Prime Minister Narendra Modi’s third term, comes amidst rising inflation and global economic uncertainty. All eyes are on Sitharaman to address these challenges while continuing fiscal consolidation.

Expectations are high for relief measures, particularly for the middle class struggling with inflation and stagnant wage growth. There is widespread speculation of income tax rate reductions or slab changes, possibly including raising the tax-free income limit under the new tax regime to ₹10 lakh. Prime Minister Modi himself alluded to the government’s focus on uplifting the poor and middle class, further fueling these anticipations.

Economic forecasts vary. While the Economic Survey projects a GDP growth rate of 6.3-6.8% for FY2025-26, the Reserve Bank of India predicts inflation at 4.2%. The government aims to maintain fiscal discipline, balancing growth measures with fiscal restraint. Experts like those at Ernst & Young and DBS Bank suggest a capital expenditure increase of at least 20% to boost economic activity and prioritize broader stability.

The previous budget, presented on July 23rd, 2024, following the general elections, was also a full budget. This year’s budget, however, will be keenly watched for its approach to tackling inflation and providing much-needed relief to taxpayers. The budget’s presentation will be live-streamed on various platforms including Sansad TV, Doordarshan, and the Ministry of Finance’s YouTube channel. The budget, a comprehensive account of government revenue and expenditure, is expected to outline strategies for sustained economic growth and social justice. The government has also highlighted the success of the Smart Cities Mission, with nearly 7,500 projects completed under the initiative.

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