FM Nirmala Sitharaman to present 8th consecutive Budget today
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New Delhi: The Economic Survey 2024-25, unveiled on Friday, has laid the groundwork for Finance Minister Nirmala Sitharaman’s Union Budget presentation on Saturday, which is expected to prioritise economic growth with equity.
A key focus of the survey is improving the quality of life in rural India through enhanced financial inclusion, infrastructure development, and social welfare initiatives, reported IANS. It highlights efforts to expand access to credit for rural households and small businesses via microfinance institutions, self-help groups, and other financial intermediaries. Increased allocations for agriculture, rural development, and welfare schemes aimed at uplifting the poor are anticipated in the upcoming Budget.
The survey underscores the government's commitment to infrastructure investments as a catalyst for economic expansion and job creation. It stresses that sustained capital expenditure over the next decade is essential for India to achieve its development goals. Between FY20 and FY24, the Centre’s capital spending on key infrastructure sectors has grown at an average annual rate of 38.8%.
For the middle class, potential tax relief measures, including a reduction in income tax rates and a higher standard deduction, may be on the horizon. Under the old tax regime, the basic exemption limit stands at Rs 2.5 lakh, while it is Rs 3 lakh for those under the new tax regime. Lower tax burdens could boost disposable income, spur consumption, and further stimulate economic growth.
The survey also points to rising private consumption as a crucial factor in sustaining India’s domestic economy amid global uncertainties. Additionally, adjustments in customs duties are likely to correct the inverted duty structure—raising tariffs on finished goods while reducing duties on raw materials to support domestic manufacturing.
Following the survey’s release, Chief Economic Advisor V Anantha Nageswaran noted that India must rely on domestic growth drivers as the era of rapid global trade expansion is waning.
Finance Minister Sitharaman will present the Budget in the Lok Sabha at 11 am on Saturday. The Budget Session of Parliament, which commenced on January 31, will proceed in two phases—concluding its first phase on February 13 and resuming from March 10 to April 4.