Cabinet approves Union Budget 2025-26, to be tabled in Parliament shortly

Union Budget 2025: Finance Minister Nirmala Sitharaman will present her eight consecutive Budget on Feb 1

The Union Cabinet, led by Prime Minister Narendra Modi, has approved the full Budget for financial year 2025-26 (FY26), setting the stage for Finance Minister Nirmala Sitharaman's eighth consecutive Budget presentation in Parliament today. Sitharaman’s speech will outline the government’s fiscal policies, revenue and expenditure plans, taxation reforms, and other significant announcements.

 

This marks the 14th Budget under the NDA government led by PM Modi, including two interim Budgets ahead of the general elections in 2019 and 2024.  Budget 2025 LIVE

 

Budget 2025 expectation: Tax relief, job creation, and more

One of the most anticipated aspects of the Budget is potential tax relief for individuals and businesses. There is widespread demand for a revision in income tax slabs under the new tax regime, with many hoping that annual incomes up to Rs 10 lakh will be made tax-free. Businesses are also looking for adjustments in corporate tax rates and fresh incentives to promote investment and job creation. Given the rising cost of living, taxpayers expect higher exemption limits and standard deductions, which could provide relief to the salaried class. 

 

 

Another key expectation from this Budget is measures to combat inflation and lower the cost of essential goods. Households are looking for policies that will help reduce prices of daily-use items, possibly through GST revisions or subsidies. Inflation has been a persistent concern, and targeted steps to stabilise commodity prices could be a major focus area.

 

With job creation being a priority, the youth are hopeful for policies that will boost employment opportunities. Sectors such as manufacturing, services, and the digital economy may receive government incentives and investments to drive job growth. The focus on skill development and startup funding could also be strengthened to support the growing workforce.

 

Infra and housing likely to receive high allocation

Industry leaders are closely watching for sector-specific announcements. Infrastructure and housing are likely to receive higher capital allocations, while sectors such as artificial intelligence, digital transformation, and green energy could see new policy initiatives and funding. The government’s continued push for Make in India and domestic manufacturing is expected to play a key role in the Budget’s overall strategy. 

 

The Economic Survey 2025, tabled a day before the Budget, projects India’s GDP growth at 6.3 per cent to 6.8 per cent for FY26. The survey highlights strong economic fundamentals, supported by a stable external account, ongoing fiscal consolidation, and healthy private consumption. The government is expected to maintain a balance between growth-oriented policies and fiscal discipline, ensuring that public spending is targeted and sustainable.

 

As Sitharaman presents the Budget today, all eyes will be on how it addresses taxation, inflation, employment generation, and industrial growth while maintaining fiscal prudence.