Finance Minister (FM) Nirmala will present the union budget 2025-26 tomorrow, February 1. However, ahead of that, India’s FM will table the economic survey for 2024-25 in parliament today, January 31, 2025. The document evaluates key economic indicators, including deceleration and rupee depreciation, against the US dollar and changes in consumer spending.
The pre-budget document will be presented in parliament between 12:00 PM and 1:00 PM. After that, chief economic adviser V. Anantha Nageswaran will address the media at 2:30 PM.
Tomorrow’s budget presentation, which the FM will begin at 11:00 AM, is expected to bring income tax relief. It will be her eighth consecutive budget presentation, setting a record. She has presented six annual and two interim budgets under the NDA government’s consecutive terms in power and is one of the major PM Modi 3.0 cabinet members.
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4 Major Expectations From The Union Budget 2025
Here are the top 4 things residents can expect from the budget 2025-26:
Increase in Basic Exemption Limit
The basic exemption limit, currently Rs 3 lakh, is expected to increase to Rs 5 lakh. This will increase consumption and disposable income for individual taxpayers.
Increase in 80C Deduction Limit
Currently, the Section 80C limit is 1.5 lakh, but under the new budget, the government is expected to raise this limit to 2 lakh.
Production Linked Incentives for R&D
To promote innovation, the government may introduce a production-linked incentive plan for research and development (R&D) activities. It could include additional deductions for specified R&D expenditures based on criteria like increased turnover, employment generation, or capital investment.
Reduction in Surcharges
In the budget 2024, the maximum surcharge levied on individuals was reduced to 37% – 25%. This is expected to be further reduced in the budget for 2025-26.
The budget for 2025-26 is expected to be neutral. It will likely focus on creating employment, controlling rural inflation, and pursuing tax relief. However, the economic survey that FM will present today holds unseen weak points of the economy to work on.
