The Union Budget 2025 is one of the most anticipated financial events of the year, shaping the economic roadmap for the country. From taxation reforms to industry-specific policies, it impacts businesses, individuals, and sectors alike. The Finance Minister completed her Pre-Budget Consultation with stakeholders, unions, and other representatives on January 6, ahead of beginning work on Budget 2025-26. 

Meanwhile, the first part of the Parliament’s Budget session will run from January 31 to February 13, 2025, followed by the second part from March 10 to April 4, 2025. In this article, explore the Budget 2025 date, time, key expectations, and how to watch the live budget 2025 presentation.

Budget 2025 Date and Time

The Union Budget 2025 is scheduled to be presented on February 1, 2025, at 11:00 AM. Continuing the annual tradition, Finance Minister Nirmala Sitharaman will unveil the government’s financial plans and policies for FY 2025-26 for the eighth consecutive time. This date marks the beginning of crucial economic discussions and policy implementations that will shape India’s growth trajectory.

Top Budget 2025 Expectations 

1. Economic Growth and Fiscal Deficit

The government is anticipated to project a nominal economic growth rate of 10.3% to 10.5% for the upcoming fiscal year, an increase from the 9.7% forecast for the current year. This optimistic outlook is expected to be supported by government capital spending, agriculture, and export growth. Despite the growth initiatives, the government aims to reduce the fiscal deficit to below 4.5% of GDP, aligning with fiscal consolidation goals.

2. Tax Reforms

To stimulate consumption and provide relief to taxpayers, the following measures are anticipated:

  • Personal Income Tax Cuts: Potential reductions in personal income tax rates to increase disposable income and boost demand.
  • Basic Exemption Limit Increase: Proposals to raise the basic exemption limit under the new tax regime from ₹3 lakh to ₹5 lakh, providing relief to middle-class taxpayers.
  • Simplification of Tax Compliance: Efforts to simplify tax laws and reduce litigation, including the potential introduction of a new income tax bill aimed at making the tax system more comprehensible and reducing the number of pages by about 60%.

3. Capital Expenditure and Infrastructure

A continued focus on infrastructure development is expected, with:

  • Increased Capital Expenditure: The government may target a capital spending of ₹11 lakh crore in the Budget for the next fiscal year, maintaining the previous year’s level to support economic growth.
  • Railway Sector Investment: Indian Railways could receive a 15-20% increase in capital expenditure allocation, potentially raising the total to over ₹3 lakh crore, up from ₹2.65 lakh crore in the current fiscal year.

4. Disinvestment and Asset Monetization

The government is likely to reduce its disinvestment and asset monetization target by 40% for FY25, lowering the goal to less than ₹300 billion from the initial ₹500 billion. This adjustment reflects ongoing challenges in the sale of state-run firms and asset monetization efforts.

5. Employment and Job Creation to be on Priority

With the Union Budget 2025-26 approaching, job creation and wages are at the forefront of discussions. As India faces a structural slowdown, experts emphasize the need for jobs that meet the cost of living, not just job creation. Both the Confederation of Indian Industry (CII) and Central Trade Unions (CTUs) have highlighted the need to boost employment guarantee schemes, focus on upskilling, and improve job readiness.

Kunal Kumar Kundu, India Economist at Societe Generale, raised a critical concern: “India is experiencing a structural slowdown, not a cyclical one. Wages have contracted over the past four years. Job creation is crucial to address this.” Kundu emphasised the need for targeted focus on MSMEs and called for an urban employment generation scheme.

Echoing this, Ramani Dathi, CFO at TeamLease Services, underscored the need for industrialization, formalization, financialization, and urbanization to create formal employment. She noted that addressing low wages is as important as creating jobs, with a targeted focus on MSMEs—which are central to employment generation.

Both the Confederation of Indian Industry (CII) and Central Trade Unions (CTUs) have called for increased investments in employment guarantee schemes like MGNREGA, alongside a greater emphasis on upskilling and ensuring job readiness. While CII advocates for enhanced productivity and skills development, CTUs are pushing for an extension in workdays and a minimum wage guarantee for workers under such schemes.

6. Addressing Shortcomings of Flagship Healthcare Schemes

The healthcare sector seeks reforms to address the shortcomings of flagship schemes like Ayushman Bharat, says Sahil Lakshmanan, Chief Business Officer of CarePal Money. While Ayushman Bharat has helped provide financial coverage to disadvantaged populations, a major issue remains: many high-quality private hospitals are reluctant to admit patients due to low reimbursement rates and delayed payments. Only 43% of hospitals under the program are private.

Lakshmanan also pointed out that the Ministry of Health and Family Welfare’s allocation for 2024-25 is ₹90,959 crore, or 1.89% of the total budget—down from 2.3% in 2019-20. He emphasized the need for a balanced approach, with more focus on building government-funded hospitals to reduce reliance on private institutions and address regional disparities.

7. Enhancing Healthcare Accessibility

The Union Budget 2025 presents a vital opportunity to address critical gaps in India’s healthcare system. Harish Trivedi, CEO of Cancer Treatment Services International (CTSI), emphasized the urgency of improving healthcare accessibility, particularly in underserved regions. “The coming Budget allows the government to address critical gaps in the Indian healthcare system,” said Trivedi.

A key area for improvement is the enhancement of healthcare in remote areas. “We strongly advocate for increased investment in teleradiology services, which are essential to provide timely and accurate diagnostic solutions to patients in rural and remote locations,” he added.

Trivedi also highlighted the potential of artificial intelligence (AI) in healthcare, particularly for predictive analytics and optimizing radiation therapy.

Additionally, strengthening telemedicine infrastructure to make quality healthcare accessible in Tier 2 and Tier 3 cities, alongside improving healthcare infrastructure in rural areas, is a critical step towards reducing the reliance on urban centers, Trivedi concluded.

8. D2C Startups’ Expectations from Union Budget 2025

Amar Nagaram, Founder and CEO of Virgo, has expressed that D2C startups are looking forward to initiatives that enhance access to affordable logistics, robust digital infrastructure, and streamlined cross-border trade to increase international scalability. He also emphasized the importance of policies that incentivize the adoption of green technologies, promote renewable energy investments, and support circular economy initiatives.

In the Interim Budget 2024, Finance Minister Nirmala Sitharaman emphasized a golden era for tech-savvy youth, which is particularly beneficial for D2C startups in India.

Additionally, the Union Budget 2025 is expected to prioritize innovation and growth within the country’s digital economy, which is projected to reach $1 trillion by 2028. 

9. Union Budget 2025: Key Expectations for MSMEs

As the Union Budget 2025 approaches, startups and MSMEs are anticipating measures to address their unique challenges and foster growth. Key expectations include:

9.1 Simplification of Tax Structures

Dinesh Gulati, COO of IndiaMART InterMESH Limited, emphasizes the need for a simplified tax structure to reduce compliance burdens and costs for MSMEs. He advocates for a sector-specific subsidized tax framework for startups in technology, electric vehicles, and alternative energy sectors.

9.2 Enhanced Credit Availability

Improving access to credit is crucial for MSMEs and startups. The implementation of schemes like the Credit Guarantee Scheme for Startups (CGSS) is expected to facilitate easier financing options.

9.3 Support for Export-Oriented MSMEs

Pradeep Misra, Chairman & MD of Rudrabhishek Enterprises Limited (REPL), suggests that the budget should introduce policies to support export-oriented MSMEs by extending benefits of the Production Linked Incentive (PLI) scheme. This support could enhance their output and quality, enabling them to meet international standards and boost exports.

9.4 Promotion of Innovation and Technology Adoption

Aligning legal and financial policies to foster innovation is a priority. Policies supporting emerging technologies like IoT, AI, and quantum computing are anticipated to accelerate startup innovation and growth.

9.5 Infrastructure Development

Investments in infrastructure are expected to improve logistics and connectivity, benefiting MSMEs by reducing operational costs and enhancing efficiency. The development of technology-driven infrastructure, such as IoT-enabled transport systems and smart logistics parks, is anticipated to be a focus area. 

Where to Watch Union Budget 2025 Live?

The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman on February 1, 2025, at 11:00 AM IST, can be watched live on the following platforms:

  • Television: The budget presentation will be broadcast live on Doordarshan and Sansad TV.
  • Online Streaming: The live stream will be available on the YouTube channels of Sansad TV, the Press Information Bureau, and the Ministry of Finance.
  • News Channels: NDTV Profit will also provide live coverage of the budget presentation.

Disclaimer:
The views and opinions expressed in this article are based on pre-budget discussions, industry consultations, and expert insights. The content is intended for informational purposes only and does not represent the official stance or policies of any government body, organization, or financial institution. The Union Budget 2025-26 is subject to change, and the final budget provisions will be presented by the Finance Minister in Parliament. Readers are advised to refer to official announcements for accurate and up-to-date information.

FAQs

1. Will the Union Budget 2025 address employment and job creation?

Job creation will likely be a key theme, with expected focus on:

  • Skill Development Initiatives: To equip the workforce for emerging industries.
  • Support for Emerging Sectors: Such as AI, green technologies, and manufacturing to generate new employment opportunities.

2. Where can I access the detailed Union Budget 2025 document?

The full budget document will be made available on:

  • Official Website: Visit the Ministry of Finance’s official site (www.indiabudget.gov.in).
  • Press Information Bureau: For official statements and updates post-presentation.

3. Will the Finance Minister scrap the Old Tax Regime in the upcoming Budget?

As of now, there has been no official confirmation regarding the scrapping of the Old Tax Regime. However, discussions around simplifying tax structures and encouraging individuals to shift to the New Tax Regime with lower tax rates and fewer exemptions are expected to continue. The Union Budget 2025 may provide more clarity on whether any major changes will be made to the existing tax regimes.

Author

Sarang S. Babu is an experienced content writer and marketing professional with over four years of expertise, particularly in FinTech and EdTech. Passionate about technology, he blends technical knowledge with compelling storytelling to create impactful content. Sarang excels in crafting informative, engaging content across diverse digital platforms, helping businesses in the FinTech and EdTech sectors effectively connect with their audience.

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