Finance Minister Nirmala Sitharaman is set to present the Union Budget 2025 today at 11:00 AM. This budget comes at a pivotal time, with India’s economic growth having slowed to a two-year low of 5.4%. The Economic Survey 2024-25, tabled in Parliament on January 31, 2025, projects GDP growth for FY 2025-26 to be between 6.3% and 6.8%.
Key Expectations from the Budget:
- Income Tax Relief: The middle class is anticipating adjustments in income tax slabs to provide financial relief. Prime Minister Narendra Modi has invoked goddess Lakshmi to shower blessings on the poor and middle class, hinting at possible favorable measures.
- Rural Development: The government is expected to continue its emphasis on rural development, with a projected 5-8% year-on-year increase in allocations for key rural development schemes. This focus aims to boost rural infrastructure and livelihoods.
- Healthcare Sector: Stakeholders in the healthcare industry are calling for increased government support to strengthen infrastructure and drive innovation. There is a demand for higher budget allocations to address critical challenges in the sector.
- Education and Skill Development: The education sector is hopeful for reforms that enhance digital infrastructure and address funding gaps. Emphasis on employment generation and skill development, with initiatives such as Employment-Linked Incentives and internship programs, are anticipated.
- Infrastructure Investment: Continued capital investment in water supply, metro systems, and climate-resilient infrastructure is expected. Support for Smart Cities, Transit-Oriented Development, and affordable housing may also be prioritized.
- Digital and AI Expansion: There is anticipation for robust provisions to maintain India’s global competitiveness in the rapidly evolving tech landscape. Increased allocation for cybersecurity, enhanced funding for AI and deep-tech startups, and incentives for AI integration across sectors like healthcare, agriculture, and manufacturing are expected.
As the nation awaits the detailed announcements, the budget is poised to address these key areas to stimulate economic growth and development.
