Budget 2025 Highlights: Indices End Trading On A Flat Note, New Tax Regime Slabs Revised
Union Budget 2025 Highlights: Finance Minister Nirmala Sitharaman will table the Union Budget 2025-26 in Lok Sabha today, please follow for all the latest news and updates.
Background
Union Budget 2025 Highlights: Hello and welcome to ABP Live's Budget 2025 LIVE blog. Please follow this space for all the latest updates on the Budget Presentation scheduled for Saturday, February 1, 2025.
Finance Minister Nirmala Sitharaman will table the Union Budget 2025 in Parliament today. This will mark the eighth consecutive Budget presentation for Sitharaman.
The Budget Presentation will start at 11 am, marking the second budget of PM Modi's third term in office. The live announcement can be viewed on several government channels, including Doordarshan, Sansad TV, and the Government of India's YouTube channels.
The budget speech and related documents will be available online on the India Budget website.
Economic Survey 2025-26
The Finance Minister presented the Economic Survey on Friday ahead of the final Budget, outlining key priorities for the nation. The survey projected India's growth rate for the 2025-26 fiscal year (FY26) to be between 6.3 per cent and 6.8 per cent. The survey highlighted the resilience of the Indian economy in the face of global uncertainties and stressed the importance of ongoing reforms to sustain strong growth.
The Economic Survey highlighted the stability and strong capitalisation of India’s banking system, with gross non-performing assets (NPAs) dropping to a 12-year low of 2.6 per cent. However, the report raised concerns about unsecured personal loans and credit card defaults, which made up 51.9 per cent of new NPAs in retail loans as of September 2024.
Additionally, food inflation in India rose from 7.5 per cent in FY24 to 8.4 per cent in FY25 (April-December), with certain items like vegetables and pulses driving the increase. The surge in food prices was influenced by factors such as supply chain disruptions and unpredictable weather conditions.
Although vegetables and pulses account for 8.42 per cent of the CPI basket, they contributed 32.3 per cent to the overall inflation in FY25 so far, according to the survey. Compared to food grains, vegetables were more vulnerable to extreme weather events such as cyclones, thunderstorms, droughts, and heavy rains.
Budget 2025 Expectation
Naveen Chandra Jha, MD and CEO, SBI General Insurance, noted that health insurance has emerged as a crucial safety net for Indian families, shielding them from unexpected medical expenses. “According to the IBEF report, India is the 4th largest general insurance market in Asia and the 14th largest globally. Data from IRDAI’s annual reports reveals that health insurance has grown steadily at approximately 25 per cent annually over the past three years, highlighting its importance in protecting households,” he added.
“As India advances toward financial inclusivity and universal healthcare, Budget 2025 offers a pivotal opportunity to further strengthen the health insurance sector. Anticipated policy measures include enhancing accessibility, simplifying tax benefits, and encouraging innovation in insurance products. Initiatives such as Bima Sugam, designed to achieve the goal of ‘Insurance for All’ by 2047, are expected to receive regulatory and fiscal support to address the protection gap. Additionally, the budget is likely to focus on expanding access in underserved regions through government-private partnerships, targeted subsidies, and advancements in digital infrastructure. By fostering a conducive ecosystem, Budget 2025 can empower insurers to contribute to a healthier, more secure India, aligning with the vision of a Viksit Bharat,” he said.
Lower Infra Outlay A Concern, But Asset Monetisation Should Help Sustain Growth, Says Property First CEO
Bhavesh Kothari, Founder and CEO, Property First lauded the launch of SWAMIH 2.0 and said the expansion in the fund to develop affordable houses will infuse some much-needed liquidity in the housing segment. "The support of Rs 15,000 crore to states, along with a well-defined three-year project roadmap, will further strengthen infrastructure development. Though a reduction of Rs 1 lakh crore in capital outlay for infrastructure may be worrisome, the government's focus on public-private partnerships and an ambitious asset monetisation target of Rs 10 lakh crore over the next five years should sustain infrastructure growth," the expert said.
Budget Will Help Boost Participation Of Women In Economy, Says FORCES Executive
Reacting to the Budget reforms focused on women and the role of the younger generation in the economy, Chirashree Ghosh, National Coordinator, FORCES (Forum for Creches and Child Care Services), said, "The Union Budget 2025 announcement of increase in allocation for Saksham Anganwadi and Poshan 2.0 is a welcome step towards strengthening early childhood care in India. With 32.1 per cent of children under 5 years being underweight, enhanced nutrition support is a vital parameter for their development. This enhanced funding will help create comprehensive childcare support systems. Following the government's push for increasing women's economic participation and the expanding gig economy, such infrastructure is crucial for enabling them to fully engage in the workforce and pursue livelihood opportunities."
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