The Union Budget 2025, set to be presented by Finance Minister Nirmala Sitharaman on February 1, 2025, is highly anticipated. With a focus on boosting economic growth and addressing key sectors, several significant announcements are expected. Here are the major highlights:
Expected Key Announcements
1. Income Tax Reforms
- Revised Tax Slabs: The government may introduce modifications in income tax slabs to provide relief to middle-class taxpayers. Reports suggest that the basic exemption limit may rise from ₹3 lakh to ₹5 lakh under the new tax regime, potentially increasing disposable income and consumer spending.
- Enhanced Deductions: Anticipated changes include higher deductions for health and life insurance premiums and increased tax benefits for voluntary contributions to the National Pension System (NPS).
2. Infrastructure Development
- The budget is likely to maintain strong capital expenditure on railways, roads, and defense, ensuring sustained infrastructure growth.
- Green Energy Initiatives: The government may announce incentives for renewable energy projects, including green hydrogen initiatives and sustainable power integration.
3. Agriculture and MSME Support
- Increased Funding for Agriculture: The budget is expected to allocate higher resources to the agriculture sector, possibly introducing tax reforms to benefit farmers.
- MSME Sector Boost: Measures such as tax reliefs and enhanced access to credit may be announced to support the growth of Micro, Small, and Medium Enterprises (MSMEs).
4. Sector-Specific Policies
- Electronics & Semiconductor Industry: With the government’s focus on domestic production, increased allocations under the Production-Linked Incentive (PLI) scheme are anticipated.
- Circular Economy Initiatives: Tax rebates and incentives could be introduced for companies focusing on sustainability and waste management.
5. Fiscal Management
- The government is expected to aim for a fiscal deficit of around 4.7% to 4.8% of GDP, balancing fiscal prudence with economic stimulus measures.
6. Social Welfare Programs
- Potential announcements may include improved healthcare access, job creation schemes, and enhanced benefits under PM-Kisan for farmers.
7. Technology and Innovation
- Investment in AI and Tech Infrastructure: The budget may include significant allocations for artificial intelligence (AI), digital transformation, and skill development programs to prepare a future-ready workforce.
Budget Session Timeline
- The Budget Session will commence on January 31, 2025, with President Droupadi Murmu’s address.
- The Economic Survey will also be presented on January 31, 2025, setting the stage for discussions leading up to the budget presentation on February 1, 2025.
The upcoming Union Budget 2025 holds promise for economic reforms, sectoral growth, and fiscal sustainability. Stay tuned for further updates and analysis on key budgetary announcements.
