New Delhi:
On February 1, 2025, Finance Minister Nirmala Sitharaman will present her eighth consecutive Union Budget, a milestone that cements her position as one of the most prolific finance ministers in Indian history. This presentation not only marks her eighth straight budget under the same prime minister, Narendra Modi, but also brings her closer to the record of 10 budgets held by former Prime Minister Morarji Desai.
Sitharaman’s tenure as India’s first full-time woman finance minister, which began in 2019, has been characterized by significant economic policies and presentations. Her budgets have been instrumental in shaping India’s economic journey, introducing bold reforms and targeted policies aimed at driving inclusive growth.
The Union Budget 2025 is expected to address the current economic slowdown and the financial strain on the middle class. India’s economic growth rate for the fiscal year 2024-2025 is estimated to be between 6.5% and 6.8%, a figure that, although lower than previous projections, still reflects resilience in certain sectors such as rural consumption and the services industry.
The budget is anticipated to include measures to boost economic growth, simplify taxes, and increase capital spending. This approach aims to make taxes more manageable for everyone and invest more in infrastructure to support economic growth. Key industry demands, including those from the gold, paint, and crypto sectors, are also expected to be addressed. For instance, the gold market is concerned about potential hikes in import duties, while the paint industry seeks reduced import duties and government support for R&D and exports. The crypto sector is calling for a clearer regulatory framework and tax reductions.
The budget session will be held in two phases: the first leg from January 31 to February 13, and the second leg from March 10 to April 4. Sitharaman’s presentation will begin at 11:00 AM on February 1 in the Lok Sabha, followed by the tabling of documents in the Rajya Sabha. The budget speech will be available for live viewing on the government’s official Union Budget website and Sansad TV.
Nirmala Sitharaman holds the record for the longest budget speech, which lasted two hours and 40 minutes in 2020. Her tenure has seen several landmark schemes and tax reforms, including the reduction of corporate tax rates, the introduction of the optional personal tax regime, and the abolition of the Angel tax. These reforms have streamlined the tax system and enhanced fairness, making India a more attractive destination for global investments.
The timing and date of the budget presentation have historical significance. The traditional 5 PM timing was changed to 11 AM in 1999 by Finance Minister Yashwant Sinha to align with the working hours of the Parliament. The presentation date was also shifted to February 1 in 2017 to facilitate earlier implementation of the budget from the start of the fiscal year.
