Preparations for the Union Budget 2025, the second full budget of Modi Government 3.0, are in full swing. Finance Minister Nirmala Sitharaman will commence pre-budget consultations with various stakeholders on December 6. These discussions will involve leading economists, industry representatives, and social sector experts, aiming to shape policies that address India's economic challenges and set the course for a developed nation by 2047.
Pre-Budget Consultations: Key Focus Areas
On December 7, Sitharaman will meet representatives from farmers' organizations, agricultural economists, and the micro, small, and medium enterprises (MSME) sector. The pre-budget meetings will continue until December 30, including sessions with experts from education, healthcare, labor unions, and the financial and service sectors. The consultations aim to gather diverse perspectives to frame policies addressing inflation, GDP growth slowdown, and public welfare.
Challenges for the Upcoming Budget
India's GDP growth for Q2 of FY 2024-25 (July–September) dropped to 5.4%, the lowest in seven quarters. Meanwhile, inflation remains a pressing concern, with the Reserve Bank of India (RBI) unlikely to ease interest rates soon. Against this backdrop, the Union Budget 2025 is expected to focus on measures that provide relief to the common public while boosting economic recovery.
The Union Budget is a critical document outlining the government’s revenue, expenditure, and key policy directions. Its preparation involves extensive inter-departmental collaboration, spearheaded by the Department of Economic Affairs. The final budget for FY 2025-26 is expected to be presented in Parliament on February 1, 2025.