Union Budget 2025-26 Expectations: Everything You Need To Know About It

The Union Finance Minister will present the Union Budget 2025-26 in less than a month for the eighth consecutive time. This Budget 2025-26 will be the Modi government’s second full budget after they come into power for the third time. 

The budget preparation has been going on for months, the FM has concluded the pre-consultation meeting with the stakeholders to discuss the recommendations, economy state, and others to prepare the budget. People thinking about the budget can check out the Budget 2025-26 expectations and other relevant details here. 

Union Budget 2025-26 Expectations

Nirmala Sitharamn, Union Finance Minister finished the month-long consultation with stakeholders on 06 Jan 2025. The consultation with stakeholders is the budget exercise to prepare the budget, where the government takes the industry leaders’ and stakeholders’ concerns and recommendations into consideration. 

As the government prepares for the budget the Fintech sector or NBFC and others anticipate the budget expectations, let’s see what people and industries expect from the budget for agriculture, education, healthcare, and other sectors:

  • The budget 2025-26 may fulfill the demand of the agriculture machinery industry and modernize agriculture with advanced machinery to improve the livelihoods of the farmers. According to reports, the stakeholders expect the focus on rice mills and subsidized energy-efficient machinery for farmers. 
  • The government may hike the import duty on gold considering the curb of excessive imports and trade deficit, which may result in an increase in gold value at the domestic scale.
  • The government may favor EV adoption and can introduce policies that can support EV production and adoption. The government may take initiatives to financially support the EV companies, and invest in innovative companies to scale this industry. 
  • The government may introduce employment-linked incentive schemes in India’s Union Budget 2025, improving the National Retail Trade Policy, and expanding the Production-Linked Incentive scheme to boost India’s global competitiveness in sectors such as electronics, household appliances, food and beverages, textiles, and furniture. This approach can generate employment opportunities and drive the country’s GDP. 
  • With interest-free plans, digital financial solutions, and tax breaks, Budget 2025 may  increase financial accessibility and encourage innovation in the education sector. The stakeholders believe the government will initiate policies that encourage collaborations between fintech firms and academic institutions. 
  • The real estate sector emphasizes relief on Housing loans to boost investment in the real estate sector so people can afford to buy their homes. 
  • The IT industry expects advanced digital infrastructure and frameworks that will allow the companies to innovate and take the country on a global platform. The TeamLease Digital has said they expect tax concessions or incentives that will help the industry to bloom as well as attract foreign investment. 
  • The government may focus on rural road infrastructure development through the PMGSY (PM Gram Sadak Yojana) with 10% more allocation in the budget.  

Union Budget 2025-26 Tax Expectations and Others 

Above we have discussed industry or sector-wise expectations from the Budget 2025-26, let’s see what the citizens or businesses can expect for tax provisions in the budget:

  • There is a chance that the government might address NBFC issues related to short-term loans to salaried workers in the Union Budget 2025. The government might lower the SARFAESI Act threshold to Rs 1 lakh making the recovery process for small-ticket loans easy, improving lenders’ cash flow, and faster borrowers’ access to credit.
  • The government also plans to initiate a 10% TDS exemption for interest income to offer more effective lending solutions to NBFCs. This approach may affect the salaries of professionals who opt for short-term credit loans for emergencies. 
  • The government plans to increase the monthly pension under the EPS scheme to ₹7500 for private sector employees.
  • The government may increase the standard deduction for individuals and pensioners. 
  • The government may consider revamping the income tax slabs under the new tax regime to make it align with current economic conditions and inflations. 

Apart from the tax expectations, AI and the Digital sector expect more inclusive government provisions that will nurture the development of futuristic technology. According to reports, people expect more clear tax rules on digital assets like cryptocurrencies, NFTs, etc. The experts also believe the government may support Web3 and digital assets in the future.  

When will the FM present the Union Budget 2025-26? 

The Union government will present the Union Budget 2025-26 in the parliament on 01 Feb 2025 at 11 AM. The government has not confirmed the dates, it’s the traditional date, however, based on the preparation of the budget on track, we can expect the budget to be present on the expected date.

The government has made some appointments ahead of the Budget 2025-26, and now we only have less than a month to make our budget for 2025-26. If everything goes according to tradition, the government can announce the Union Budget 2025-26 confirmation the date in the last week as the Finance Ministry celebrates the halwa ceremony before the budget. 

Will the stock market close on Budget Day?

The Union Budget may impact the stock market as we will have the financial year economic policies, government spending, etc. Hence, investors and traders thinking about the stock market on budget day should know the BSE and NSE both will remain open on 01 Feb 2025. 

The Indian stock exchange will be conducting a live trading session on 01 Feb 2025 as the Union budget presentation will commence on this day. 

From 10 Jan 2025, the government has allowed the citizens to share their ideas or suggestions on the MyGov platform, so if you have any suggestions for the Union Budget 2025-26, you can submit your ideas on the platform. 

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