Budget 2025 Highlights: Will old tax regime get scrapped? Government clarifies

The government has allocated Rs 11.1 lakh crore for capital expenditure in FY25. However, delays in spending caused by the Lok Sabha elections may lead to final figures falling short of expectations.

In her first Budget presentation in 2019, Sitharaman replaced the decades-old leather briefcase used to carry Budget documents with a traditional ‘bahi-khata’ wrapped in red cloth. Continuing the practice from the past three years, this year’s Budget will also be presented in a paperless format.

Prime Minister Narendra Modi has arrived at Parliament as preparations for the Budget presentation begin. Finance Minister Nirmala Sitharaman is set to present the Union Budget shortly, with anticipation building for the key announcements and financial plans for the upcoming fiscal year.

Congress MP Jairam Ramesh commented ahead of the budget saying that the intent and content of the budget determines its effectiveness. He said that he is not expecting major announcements that will significantly boost private investment. BUt will have to wait and see if there’s any tax relief for the middle class. Additionally, it’s important to watch whether investors receive any relief from what is being called ‘tax terrorism.’ Ramesh said that they have called for reforms in GST.

The Union Cabinet has approved the Budget 2025. Finance Minister will not deliver the Budget speech in some time.

Keep watching this space for further developments.

The Union Budget 2025-26 outlines key issues like tax policies, spending priorities, and subsidies. The middle-class is really keen on change in tax slabs. It’s important for citizens to understand who is taxed, how essential services like education and healthcare are funded, and whether subsidies reach the right people. Fiscal policies shape national financial health, and careful management can lead to growth, while poor handling can cause instability.

Union Home Minister Amit Shah has arrived at Parliament ahead of the presentation of the Union Budget 2025. The much-anticipated budget will be tabled in the Lok Sabha today by Union Finance Minister Nirmala Sitharaman. This annual event marks an important moment in the country’s financial planning, with the budget outlining key policies and allocations for the upcoming fiscal year. The presentation is set to address various sectors, aiming to drive growth, investment, and economic stability in the country. The budget session is expected to witness crucial discussions and decisions shaping India’s economic future.

Upon arriving at Parliament for the Budget presentation, Union Minister Pralhad Joshi stated that under the leadership of Prime Minister Narendra Modi, the country’s economy has been well-managed, and every year, the government has presented budgets that are pro-people, pro-poor, and pro-middle class. He added that this year will be no different.

Innovation and startups are expected to be a major focus of Budget 2025. The government is likely to introduce measures to support the startup ecosystem, such as tax breaks, easier access to funding, and better regulations for scaling businesses. Increased funding for research and development in various sectors, particularly tech and green industries, is also expected. Budget 2025 could lay the groundwork for making India a hub for global innovation.

Currently, most senior citizens rely on the National Pension System (NPS), pension products, annuities, and other retirement-focused investments to support their later years. Given this, there is a growing need to make withdrawals from these products completely tax-free to ensure a more secure financial future for seniors.

The Union Cabinet meeting has begun at the Parliament. Finance Minister Nirmala Sitharaman is all set to present the Union Budget 2025 speech at 11:00 am.

Taxpayers previously could claim a deduction of up to Rs 1,50,000 on the interest paid for loans taken to purchase electric vehicles (EVs), provided the loan was sanctioned between January 2019 and March 2023. To encourage further EV adoption, many are hoping that Finance Minister Nirmala Sitharaman will reinstate this deduction in the upcoming budget.

Currently, affordable housing includes houses with a carpet area of up to 60 sqm in metropolitan areas and 90 sqm in non-metropolitan areas, with a maximum value of Rs 45 lakh. As Budget 2025 is here, experts are optimistic that this threshold may be increased to better reflect the current market conditions.

Union Minister Gajendra Singh Shekhawat has said that the Budget 2025 will build on previous efforts, focusing on the welfare of the country and its people, particularly the poor. He added that it will take a significant and innovative step towards achieving the goal of a ‘Viksit Bharat’.

President Murmu emphasised the importance of small businessmen in driving economic growth of India. She also notes a significant increase in infrastructure funding. Murmu also highlighted the following:

– Over 1 Crore Divyang Cards Distributed for Inclusive Development.

– Distribution of over 1 crore Divyang cards to promote inclusivity.

– Welfare of Dalits and Tribals remains a key focus.

– Government’s commitment to the welfare of Dalits and Tribals.

– 30 new medical colleges established in tribal areas

Ahead of presenting the Union Budget, President Droupadi Murmu performed the traditional gesture of feeding Union Finance Minister Nirmala Sitharaman ‘dahi-cheeni’ (curd and sugar) for good luck. This marks Sitharaman’s 8th consecutive Union Budget presentation, which she will table in Parliament today.

See more

#watch | President Droupadi Murmu feeds Union Finance Minister Nirmala Sitharaman the customary 'dahi-cheeni' (curd and sugar) ahead of her Budget presentation.

Union Finance Minister Nirmala Sitharaman will present her 8th consecutive #unionbudget, today in Parliament

(Source… pic.twitter.com/jZz2dNh59O

— ANI (@ANI) February 1, 2025

Expectations are high that Finance Minister Nirmala Sitharaman will offer substantial income tax relief to middle-class and salaried taxpayers. A key proposal is the introduction of a new tax slab in the range of Rs 15-20 lakh under the revamped tax regime.

The Union Budget 2025 is expected to emphasise strengthening India’s manufacturing sector in alignment with the ‘Viksit Bharat’ vision. Key priorities include easing the tax burden on the middle class, stimulating consumption, and ensuring fiscal responsibility. The budget is likely to encourage investments in manufacturing, infrastructure, and job creation, with a particular focus on customs duty reforms, skill development, and improvements to the agricultural value chain. These measures aim to foster economic growth and provide long-term benefits to the country’s workforce and industries.

Finance Minister Nirmala Sitharaman will present the Union Budget for the fiscal year 2025-26 today, making history as the first finance minister to present the budget for eight consecutive years. While this achievement sets a new milestone, the overall record for presenting the most Union Budgets in India still belongs to former Prime Minister Morarji Desai. Desai presented a total of ten budgets, with six during his time as finance minister from 1959 to 1964, and four more between 1967 and 1969.

Infrastructure development will likely remain a priority for the government in Budget 2025. The government is expected to announce significant allocations for infrastructure projects, including roads, railways, ports, and airports. Improved infrastructure is seen as a key enabler of economic growth, and Budget 2025 could feature a strong focus on boosting connectivity, urban development, and rural infrastructure, which will have long-term positive effects on the economy.

According to the Economic Survey 2024-25, India’s unemployment rate has notably decreased from 6% in 2017-18 to 3.2% in 2023-24. The survey underscores robust growth in formal sector jobs, particularly for younger individuals, along with an increase in self-employment opportunities. The survey highlights key sectors poised for future job growth, notably the digital economy and renewable energy industries. These areas are anticipated to create numerous job opportunities, particularly for women, fostering greater financial independence and empowerment.

There is a strong push for promoting job creation in both the formal and informal sectors. Budget 2025 could also include support for industries that are labor-intensive and capable of generating large-scale employment.

Finance Minister Nirmala Sitharaman has arrived at the Parliament. The FM will be presenting the Union Budget 2025 speech at 11:00 am today. Stay with us and keep watching this space for further updates, key announcements and highlights.