Page 5 - Budget

Budget 2025: Key industry expectations from tax cuts to reforms

A key expectation is the introduction of higher income tax exemptions to boost disposable income for middle-income households

Days ahead of Union Budget, revenue secy Arunish Chawla shifted to DIPAM

In a significant reshuffle within the Finance Ministry, senior IAS officer Arunish Chawla has been reassigned from his position as revenue secretary to head the Department of Investment and Public Asset Management (DIPAM), a move which comes three weeks ahead of the Union Budget. DIPAM secretary Tuhin Kanta Pandey has been appointed as the new revenue secretary in place of Chawla, according to a personnel ministry order. Pandey is also the finance secretary. The changes come at a time when the Finance Ministry is working on the the Union Budget, scheduled for presentation on February 1. Wednesday's reshuffle is seen as the government's strategic adjustments as it gears up for the crucial financial planning period ahead. Chawla, a 1992-batch Indian Administrative Service (IAS) officer of Bihar cadre, was appointed as the revenue secretary only on December 25 last year. He was then working as the Secretary, Department of Pharmaceuticals. He will also hold additional charge of the pos

Budget 2025: IESA asks govt to tax all new tech batteries at 5% GST

India Energy Storage Alliance on Wednesday said batteries, irrespective of technology type, must be uniformly taxed at 5 per cent GST like electric vehicles to support the emerging sector. Ahead of the Union Budget, India Energy Storage Alliance (IESA) President Debi Prasad Dash told PTI that the government may consider protecting domestic cells and battery component manufacturers in the wake of an increase in imports of lithium-ion cells, which has risen to Rs 24,000 crore in FY24 from Rs 18,000 crore in FY23, especially from China. There is a disparity in the tax structure of batteries, he said, adding GST for lithium-ion batteries is 18 per cent, but other chemistries, like lead acid, sodium, and flow batteries and others, are at 28 per cent. On the other hand, for electric vehicles, the GST is 5 per cent. "So, as an industry, we need support to this emerging sector, and all new technologies must be taxed at 5 per cent, and there should not be any difference between different ...

Union Budget should reduce personal I-T for lower-income groups: EY India

The Budget is expected to focus on boosting private capex, tax simplification and reduction in personal income tax, particularly for the lower-income groups, to stimulate demand, EY India said. The Union Budget for 2025-26 is scheduled to be presented in Parliament on February 1. EY India, in its Budget expectation note, said with over Rs 31 lakh crore stuck in income tax disputes as of 2023-24, there is an urgent need to clear Commissioner of Income Tax (Appeals) backlog and bolster alternate dispute resolution mechanisms like advance pricing agreements and safe harbours. "While a full comprehensive review of the direct tax code may take time, we might see some initial steps towards its implementation in this Budget. I also hope for a reduction in personal income tax, particularly for the lower-income groups, to provide relief and stimulate demand," said Sameer Gupta, National Tax Leader, EY India. EY said the expectations from Budget are focused on a set of strategic reforms that

GDP growth cut sets gloomy backdrop to Union Budget, says Congress

The downward revision of GDP growth estimates for the current fiscal calls for radical action to dispel the cloud of growth slowdown and investment chill in the country, the Congress said on Wednesday. AICC general secretary in-charge communications Jairam Ramesh said it also set a gloomy backdrop to the Union Budget. He suggested that income support for India's poor, higher MGNREGA wages and increased minimum support prices (MSPs) were the need of the hour, and demanded a drastic simplification of the "comically complex" GST regime and Income Tax relief for the middle class. In a statement, Ramesh said the advance estimates released by the Union government for GDP growth in the 2024-25 financial year projected a mere 6.4 per cent growth. "This is a four-year low, and a sharp deceleration compared to the 8.2 per cent growth recorded in FY24 (2023-24). It is even lower than the recent RBI estimate of 6.6 per cent growth which itself marked a reduction from the earlier projection of

Budget 2025: Gems, jewellery sector urges govt to reduce GST to 1%

The gems and jewellery sector has urged the government for a reduction in goods and services tax (GST) to 1 per cent on revenue equivalence ratio to ease the cost burden on the industry in the upcoming Budget. "We seek rationalisation of taxes and availability of finance to support business," the All India Gem and Jewellery Domestic Council (GJC) Chairman Rajesh Rokde said in a statement on Tuesday. With the continuously increasing gold rates, the current rate of GST is increasingly becoming a burden for the industry and end customers, he said. Therefore, GJC is urging for a reduction in GST from the current 3 per cent to 1 per cent in the upcoming Budget, which will encourage compliance, Rokde said. The tax reduction will enhance affordability for consumers, especially in rural areas, and most importantly, improve revenue collection by increasing the size of the formal economy, he added. The industry apex body said there is a need to introduce a concessional GST rate for lab-grow

As Census looms after years of delay, questions over expenditure persist

Finance Minister Nirmala Sitharaman is also expected to gather up the unspent capex and allocation for the current fiscal to push for a massive spending effort in FY26

45 mn VVPAT slips counted, not a single discrepancy found: CEC Kumar

The Election Commission will write to the cabinet secretary, informing that no Delhi-specific provision can be made in the Union Budget that can disturb the level-playing field, CEC Rajiv Kumar said on Tuesday. Polling for the 70-member Delhi Assmebly will be held on February 5 and the votes counted on February 8, Chief Election Commissioner (CEC) Kumar announced. Responding to a query about the the Union Budget, scheduled days ahead of the polls, Kumar said, "We will write to the cabinet secretary that no Delhi-specific provision can be made in the Union Budget that can disturb the level-playing field." The last date to file nominations is January 17 and the scrutiny of nominations will be done by January 18. Candidates will be able to withdraw their nominations till January 20. Bypolls to two assembly constituencies -- Milkipur in Uttar Pradesh and Erode in Tamil Nadu -- will also be held according to the same schedule.

Industry leaders seek affordable housing, duty relief at pre-Budget meet

The housing and infrastructure sectors were represented by leaders such as Hiranandani Group, Afcons, L&T, and GMR Group

Jobs, growth, demand in focus as FinMin concludes pre-Budget talks

The Union Budget for FY 2025-26 assumes significance as it comes on the back of lower than expected growth numbers in the second quarter and geopolitical uncertainty

Union Budget 2025: Apparel exporters seek tax incentives to boost shipments

Apparel exporters body AEPC on Saturday urged the government to announce tax incentives, including removal of a provision requiring payments to MSMEs within 45 days to claim deductions and customs duty exemption on garment machinery imports. The Apparel Export Promotion Council (AEPC) has also requested that an interest equalization rate of 5 per cent be announced in the Budget, scheduled to be unveiled on February 1 by Finance Minister Nirmala Sitharaman. Other demands include extension of concessional tax rate for new manufacturing units to encourage setting up of new garment units; simplification in the procedure of imports of trims and embellishments under IGCR (Import of Goods at Concessional Rate); and liberalizing e-commerce export procedures. "Ready Made Garments (RMG) industry has also demanded removal of Sec43B (H) of IT Act in the ensuing Budget which pertains to payment to any MSME companies within a maximum 45 days' time to claim any deduction in tax. This has increase

Budget 2025-26 must prioritise defence and security over welfare schemes

India's growing external and internal threats demand urgent shifts in fiscal focus to strengthen defence, policing, and cyber capabilities

India's housing market in de-growth phase, pins hopes on upcoming Budget

New home sales in India declined for the first time since the pandemic, as a sharp rise in housing prices and elevated borrowing costs ruined buyers' appetite in 2024 and the real estate industry is now eyeing the upcoming Budget for favourable economic conditions -- a key to reviving demand conditions. The de-growth in the Indian housing market came after three straight years of stellar growth, following the COVID-era downturn, and was attributed in part to a high base in the previous year, a fall in supply of new homes and price appreciation. Anuj Puri, Chairman of Anarock, one of the leading housing brokerage firms in the country, termed the year 2024 as a "mixed bag" for the Indian residential market and noted that, while demand for the affordable housing segment was weak, sales and launches of luxury homes remained strong. India's residential real estate market, estimated to be valued at over USD 300 billion, faced a marginal 4 per cent drop in sales volumes during 2024, ...

Philippines' Marcos signs into law record $109 billion budget for 2025

The spending is higher than a projection of 6.18 trillion pesos announced earlier this month, when revenue was forecast at 4.64 trillion pesos and the budget deficit at 5.3 per cent of GDP

Japan to unveil record $735 bn budget with ramped-up defence spending

The increase from the current fiscal year's initial annual budget of ¥112.6 trillion is around 2.6 per cent, largely in line with the government's forecast for overall inflation in this fiscal year

NATHEALTH asks govt to address gaps in healthcare in upcoming Budget

Healthcare industry body NATHEALTH has asked the government to address systemic gaps such as acute shortage of medical specialists, escalating cancer care costs, and inadequate hospital infrastructure to meet the demands of a growing population in the upcoming union Budget. In its pre-Budget recommendations, NATHEALTH sought increasing budgetary allocations of the healthcare sector to over 2.5 per cent of GDP and asked Finance Minister Nirmala Sitharaman to address the growing burden of communicable and non-communicable diseases, compounded by long standing challenges. "The upcoming Union Budget offers an unprecedented chance to address systemic gaps such as the acute shortage of medical specialists, escalating cancer care costs, and inadequate hospital infrastructure to meet the demands of a growing population," NATHEALTH President Abhay Soi said in a statement. Soi, who is also the Chairman & Managing Director of Max Healthcare Institute Ltd, further said, "Expanding hospital ...

New French government looks to fix 2025 budget while avoiding collapse

French President Emmanuel Macron's office announced a new government Monday, after the previous Cabinet collapsed in a historic vote prompted by fighting over the country's budget. The government, put together by newly named Prime Minister Francois Bayrou, includes members of the outgoing conservative-dominated team and new figures from centrist or left-leaning backgrounds. Coming up with a 2025 budget will be the most urgent order of business. The new government enters office after months of political deadlock and crisis and pressure from financial markets to reduce France's colossal debt. Macron has vowed to remain in office until his term ends in 2027, but has struggled to govern since snap elections in the summer left no single party with a majority in the National Assembly. Since his appointment 10 days ago, Bayrou has held talks with political leaders from various parties in search of the right balance for the new government. Some critics on Monday were angry at Bayrou for ..

Growth slowdown, fiscal dilemma complicate India's Budget preparation

The Ministry pointed out that revenue receipts in the first half of the year, at almost 52 per cent of Budget Estimates, were above the five-year rolling average

Funds devolved to states under 15th Finance Commission higher: FM

Funds devolved to states under the 15th Finance Commission (2021-2024) is more than what was devolved under the 14th Finance Commission (2015-20), finance minister Nirmala Sitharaman said on Friday. In a pre-budget meeting with states, Sitharaman remarked that because of healthy macroeconomic environment, buoyancy and efficiency in the tax collections, the devolution has increased. "The funds devolved to the states in the last 45 months (April 2021 to December 2024) under the 15th Finance Commission is more than what was devolved in 60 months under the 14th Finance Commission (2015-20)," an official statement quoting Sitharaman said. The Union finance minister also referred to the Scheme for Special Assistance to States for Capital Investment (SASCI), which was first announced in the Union Budget 2020-21, and acknowledged that it has received a very good response from states. States have been requesting the Central government to enhance the outlay under the scheme as it is leading

Army needs adequate capital budget to ensure deterrence: Parl panel

There was a gap between budget allocations and actual spending on the Army's modernisation and infra in four of five years from FY20 to FY24, noted the Parliamentary Standing Committee on Defence