Page 6 - Budget And Economy

Budget may project 20% capex growth, 4.4% fiscal deficit: EY report

The FY26 Budget may project a 20 per cent increase in capex spending to drive economic activity, leave more disposable income in the hands of people and target a fiscal deficit of 4.4 per cent of GDP for the fiscal ending March 2026, a EY report said on Thursday. EY India Chief Policy Advisor DK Srivastava said amid continuing global uncertainties, India may have to rely largely on domestic demand drivers to support the growth momentum. "The FY26 budget should therefore restore the momentum of growth in GoI's capital expenditure. This may be supplemented by some rate rationalisation and income tax deductions aimed at increasing personal disposable incomes, particularly in the hands of lower income and lower middle-income groups," he said. The upcoming budget must balance fiscal prudence with growth-oriented measures. Increasing capital expenditure and putting more disposable income in the hands of consumers, particularly urban consumers, will be pivotal to uplifting growth in domes

Union Budget 2025 Expectations highlights: MSMEs seek focus on renewable energy, and CBG

Union Budget 2025 Latest Updates: Catch all the latest developments related to Union Budget 2025 here

Union Budget 2025 expectations highlights: Will Budget 2025 raise tax deductions for homebuyers?

Union Budget 2025 Latest Updates: Catch all the latest developments related to Union Budget 2025 here

Budget expectations highlights: Budget should focus on boosting consumption, say industry insiders

Union Budget 2025 Latest Updates: Catch all the latest developments related to Union Budget 2025 here

Support for green tech, consumer spending boost: Automakers' Budget list

Automakers want the government to provide merit-based policies to support a full range of green technologies and alternative fuels besides allocations to facilitate electric vehicle ecosystem like charging infrastructure to further accelerate sustainable mobility in the upcoming Union Budget. With the automobile industry showing early signs of growth slowing down, they said budgetary initiatives to boost the disposable income of consumers are necessary to support robust growth. "We request the government for appropriate merit-based policies that support and help in popularising full range of greener technologies and alternative fuels thereby helping in faster and greater adoption of multiple sustainable mobility solutions," Toyota Kirloskar Motor Country Head and Executive Vice President - Corporate Affairs and Governance - Vikram Gulati said. Further, he said measures to encourage the scrapping of old vehicles through the budget will also boost demand for newer generation vehicles

Budget 2025: Insurers seek tax benefits, concessions for healthcare

Insurers are hopeful of a host of tax benefits, including concessions for the insurance and healthcare sectors, from the Union Budget 2025-26 to be unveiled by Finance Minister Nirmala Sitharaman on February 1. SBI General Insurance MD and CEO Naveen Chandra Jha said that as India advances toward financial inclusivity and universal healthcare, the upcoming Budget is expected to further strengthen the healthinsurance sector. Initiatives like Bima Sugam, designed to achieve the goal of 'Insurance for All' by 2047, are expected to receive regulatory and fiscal support to address the protection gap, he noted. "Additionally, the budget is likely to focus on expanding access in underserved regions through government-private partnerships, targeted subsidies, and advancements in digital infrastructure," Jha added. Bajaj Allianz Life MD and CEO Tarun Chugh said India's economic growth presents immense opportunities for the insurance sector to enhance financial resilience. "Aligning tax ...

What products and services may see their prices change in Budget 2025?

The Finance Minister is expected to prioritise economic growth, domestic manufacturing, and offer relief to consumers in the upcoming budget to address inflation, fiscal consolidation, and job creatio

Industries across fields expect host of measures in Budget to propel growth

With Finance Minister Nirmala Sitharaman preparing to present the first full Budget of the Modi 3.0 government, industry players from various fields have put forth their demands for raising income tax limits, taking measures for more job creation, and further improving doing business to propel growth. The industry is hopeful that the government will announce a slew of measures to boost consumption by ensuring more money in the hands of people, boosting capital expenditure, giving relief to the housing sector and technological innovations. Moin Ladha, Partner at Khaitan & Co, opined that with the Union Budget 2025 fast approaching, the industry as a whole is confident of some interesting changes to the regulatory landscape, particularly changes to foreign investment policy, streamlined compliance, and key policy changes in certain sectors. One such key change that the Budget 2025 may bring is the introduction of 100 per cent foreign direct investment (FDI) in the insurance sector, .

Budget must give tax cuts for individuals to boost consumption: Barclays

The government in FY26 Budget should announce an "effective" personal income tax cut to support consumption and demand, Barclays said on Thursday. In its FY25-26 Union Budget preview, Barclays said the key ask from the Budget, to be presented on February 1, is to support growth while adhering to fiscal consolidation path. Barclays, India Chief Economist, Aastha Gudwani said in a quest to support consumption, the finance minister should provide an effective personal income tax rate cut by further tweaking the tax slabs. This is unlikely to have a sizable fiscal cost. "That said, improved tax buoyancy will likely make up for revenue foregone under this announcement. We think a boost to consumption is needed, especially with private investment also now awaiting the increase in demand growth," Gudwani said. Barclays expects Finance Minister Nirmala Sitharaman to announce changes to the new tax regime, making it lucrative for more and more taxpayers. In the last Budget, the government

India's budget likely to raise major subsidies by 8% to $47 bn in FY27

Indian Finance Minister Nirmala Sitharaman will present the national budget on Feb 1, amid slowing growth in Asia's third-largest economy and rising global uncertainties

Union Budget 2025 expectations updates: Geospatial sector seeks funding for satellite tech

Union Budget 2025 Latest Updates: Catch all the latest developments related to Union Budget 2025 here

Budget FY26: Goldman Sachs highlights focus on fiscal deficit, growth

India's elevated public debt-to-GDP ratio remains a concern. A reduction in the general fiscal deficit from 8 per cent in FY25 to 7 per cent by FY30 is critical to keeping public debt sustainable

Consumer goods sector faces a muted quarter as urban demand stays sluggish

Despite these challenges, revenues for tracked companies are projected to grow 6 per cent year-on-year, primarily driven by price increases, while volume growth will stay in the low single digits

Budget for outcomes: Governance and financing reforms hold the key

The challenges to inclusion need to be addressed head on with governance changes and higher untied funding with community accountability and ownership

Budget 2025: Your guide to AMFI's 15 mutual fund proposals for investors

As the Union Budget for fiscal year 2025-26 approaches, the Association of Mutual Funds in India (AMFI) has presented a well-structured 13-point proposal aimed at enhancing the mutual fund industry.

Budget wishlist: Pharma firms seek simplified taxes, stronger PLI scheme

Among other demands is the removal of Section 194R, related to marketing samples, which would ease business operations

CII calls for fuel excise cut, consumption vouchers to boost demand

Industry body CII in its budget suggestions for 2025-26 has recommended lowering the excise duty on fuel to boost consumption, especially at the lower income level, arguing that fuel prices significantly drive inflation. The budget could also consider reducing marginal tax rates for personal income up to Rs 20 lakh per annum. This would help trigger the virtuous cycle of consumption, higher growth and higher tax revenue, said CII. Asserting that the gap between the highest marginal rate for individuals at 42.74 per cent and the normal Corporate Tax Rate at 25.17 per cent, is high, it said, inflation has reduced the buying power of lower and middle-income earners. "The central excise duty alone accounts for approximately 21 per cent of the retail price for petrol and 18 per cent for diesel. Since May 2022, these duties have not been adjusted in line with the approximately 40 per cent decrease in global crude prices. Lowering excise duty on fuel would help reduce overall inflation and

Japan's cabinet approves record $730 billion budget for next fiscal year

But record tax revenue is likely to help reduce new bond issuance to 28.6 trillion yen, the lowest since 2008

Monetary policy stance may have led to demand slowdown in H1: Finmin review

India's economic growth slowed more sharply than anticipated in the July-September period of FY25, dropping to a seven-quarter low of 5.4 per cent

Budget 2025-26: Sitharaman chairs 4th pre-budget meet with key stakeholders

On Tuesday this week, Prime Minister Narendra Modi also interacted with a panel of distinguished economists and thought leaders at NITI Aayog on the strategies for the Union Budget 2025-26