Union Budget 2025 Live Updates: Finance Minister Nirmala Sitharaman will present a record eighth consecutive budget, which is expected to contain measures that ease the burden on the middle class struggling with high prices and stagnant wage growth while being fiscally prudent.
As per the Economic Survey tabled on Friday, the Indian economy is expected to grow at 6.3-6.8 percent in 2025-26. While India will need structural reforms and deregulation to reinforce medium-term growth potential, investment activity is expected to pick up.
Ahead of the Budget, President Droupadi Murmu addressed a joint sitting of Parliament where she said the government has worked with strong determination to lift the economy out of the state of "policy paralysis" despite global concerns such as aftermath of COVID-19 pandemic and war-related uncertainties.
During the Budget Session, sixteen bills, including the Finance Bill 2025, amendments to the Waqf and Banking Regulations Act, and the merging of the Indian Railways and Indian Railways Board Acts, will be tabled.
Here are the Live Updates of Union Budget 2025:
Don't Let Capex Down: Aditya Sinha Writes
John Maynard Keynes famously remarked, "In the long run, we are all dead". But in the short run, without capital expenditure, we are all just stuck in a low-equilibrium growth trap.
Public investment in infrastructure, energy, and digital connectivity is the fundamental driver of productivity gains, crowding in private investment through enhanced factor mobility and network externalities.
Yet, capital expenditure is often treated like a countercyclical stimulus-announced with great fanfare but under-executed due to fiscal constraints and bureaucratic inertia. Without sustained capital formation, an economy risks stagnating in a high-cost, low-productivity equilibrium-effectively turning Keynes' long-run fatalism into a self-fulfilling prophecy.
Expectations From Budget 2025-26
#BudgetWithNDTV | All eyes on Finance Minister Nirmala Sitharaman as she is all set to present her record 8th Budget today@AnujRayate reports live from Mumbai#UnionBudget2025
— NDTV (@ndtv) February 1, 2025
Presenting Sponsor: Honda (@HondaCarIndia) pic.twitter.com/rDIZPMcnul
Finance Ministry's Report Card On Union Budget 2024-25
The Ministry of Finance gave a report card on the achievements and progress made on last year's budget announcements. The key announcements from the 2024-25 budget, including measures to simplify taxation, reduce litigation, and improve tax certainty, have shown notable progress.
Reduction in Litigation and Appeals: Introduction of the Vivad Se Vishwas Scheme, 2024, aimed at resolving pending income tax disputes.
Simplification of Capital Gains Taxation: Introduction of only two holding periods: one year for listed assets and two years for unlisted and non-financial assets.
Reassessment and Reopening of Cases: Assessments can now only be reopened beyond three years if the escaped income exceeds Rs 50 lakh, with a maximum period of five years.
Comprehensive Review of the Income Tax Act, 1961: Complete overhaul of the Income Tax Act, 1961, to make it concise and easier to understand. Over 6,500 suggestions have been received from stakeholders.
From JNU To North Block: The Rise Of India's Finance Minister Nirmala Sitharaman
Nirmala Sitharaman's journey from a middle-class upbringing to becoming one of the most powerful female leaders in Indian politics is a story of perseverance, intellect, and dedication.
According to the Ministry of Corporate Affairs, Nirmala Sitharaman was born on 18th August 1959 in the temple town of Madurai, Tamil Nadu. She did her schooling and her graduation in economics from Seethalakshmi Ramaswamy College in Tiruchirapalli. She went on to do her master's in economics from Jawaharlal Nehru University, New Delhi. Indo-European textile trade was the focus of her draft PhD thesis.
Here Is All You Need To Know About Her Education, Career And Political Journey
Nirmala Sitharaman Presents Budget Tablet At North Block
Nirmala Sitharaman Arrives At Finance Ministry
Delhi: Union Finance Minister Nirmala Sitharaman arrives at the Finance Ministry ahead of presenting the budget pic.twitter.com/qS4hzWUDw0
— IANS (@ians_india) February 1, 2025
What Gen Next Expects From Budget
Budget Bites | What does Gen-Next expect from Finance Minister Nirmala Sitharaman and the #UnionBudget2025?
— NDTV (@ndtv) February 1, 2025
NDTV's @umasudhir spoke to students at St Mary's College in Hyderabad#BudgetWithNDTV
Presenting Sponsor: Honda (@HondaCarIndia) pic.twitter.com/smA931XPbq
Impact Of Budget 2025 On India's Inflation Rate
Every Budget reflects the challenges of its time. During the Covid-19 crisis, the Budget focused on managing the pandemic's impact, while the 2011 Budget dealt with the Eurozone debt crisis. The 2025 Budget also comes with its own set of challenges, both domestic and global.
Finance Minister Nirmala Sitharaman's February 1 Budget is expected to address key economic challenges, particularly inflation. The Reserve Bank of India (RBI) works to keep inflation within its 2-6 per cent tolerance range.
India's economic growth for FY 26 is expected to be 6.7 per cent, according to government data released last week. It was primarily driven by moderating food prices. Despite this easing, the inflation rate remains above the RBI medium-term target of 4 per cent.
Will Stock Markets Open On February 1?
The stock markets will remain open for trading on Saturday, February 1, when Finance Minister Nirmala Sitharaman presents the Union Budget. Trading hours will follow the standard schedule from 9.15 am to 3.30 pm, according to separate circulars issued by NSE and BSE.
Typically closed on weekends, stock markets occasionally operate on Saturdays for special events, such as the Union Budget. On February 1, 2020, and February 28, 2015, the Budgets were presented on Saturdays, and the market remained open.
Budget May See Fiscal Consolidation But Rural, Welfare, Subsidies May Go Up
With the Union Budget for FY26 scheduled to be presented on February 1, 2025, a report by Goldman Sachs underlined two key concerns for policymakers, the pace of fiscal consolidation and the government's spending priorities.
The report highlighted that the upcoming budget will be crucial for balancing growth and fiscal discipline as India stands out for its high levels of public debt and fiscal deficit as compared with other emerging markets.
Goldman Sachs noted that the government is likely to keep the fiscal consolidation path intact, driven by the need to manage high public debt-to-GDP ratios. However, the report cautioned that this fiscal tightening could act as a drag on economic growth in the upcoming fiscal year.
A Look At Who Has Presented Most Budgets
Finance Minister Nirmala Sitharaman is set to present her eighth consecutive Union Budget on February 1. She has since delivered seven consecutive budgets along with one interim Budget in February 2024.
Morarji Desai, who served as finance minister from 1959 to 1963 and again from 1967 to 1969, holds the record for the most budgets presented by an individual - 10 in total, including two interim budgets.
P Chidambaram holds the record for presenting the second-highest number of Union Budgets, with a total of nine.
Experts Expect More Funds For Teacher Training, STEM Labs
As the Union Budget 2025 approaches, the education sector is brimming with expectations for transformative initiatives to enhance learning infrastructure and accessibility. The previous year's allocation of Rs 1.12 lakh crore to education prioritised digital learning, virtual labs, and the Digital University initiative. This year, experts are calling for continued investments to modernise the sector.
Geeta Jayanth, Principal of Chaman Bhartiya School, expressed hopes for increased funding for teacher training, experiential learning programmes, STEM labs, and smart classrooms.
Union Budget 2025: What The Budget Means For India's Education System
The Budget allocation for education, employment and skilling in 2024 was Rs 1.48 lakh crore. Of this, the highest allocation of Rs 73,498 crore was made to the Department of School Education and Literacy. From 2015-2024, India has been allocating over 4 per cent of its GDP to education sector. On the other hand, US spends 5 per cent while Canada, Japan and Germany spend 5.5 per cent, 3.6 per cent and 4.8 per cent respectively.
A skilled and educated population will result in increase in the GDP of the country. Experts have noted that as per previous trends, all developed countries have diverted a large fund towards public education system.
Areas that need increased allocation include:
- Digital Infrastructure
- Teacher Training
- Skill Development Programs
PM Modi Takes Jab At Opposition On Budget Eve
#WATCH | #BudgetSession | PM Narendra Modi says, "You must have noticed, since 2014, this is the first Parliament session, which saw no 'videshi chingari' (foreign interference) in our affairs, in which no foreign forces tried to ignite a fire. I had noticed this before every… pic.twitter.com/WWPDw0LGmS
— ANI (@ANI) January 31, 2025
How Partition Shaped Independent India's First Three Budgets
The first budget of Independent India described the Partition (1947-48) as the "most poignant human tragedy" outside of war. To understand how it was tackled, let's look at the allocations made for relief and rehabilitation.
Of the total non-defence expenditure planned for the year, which amounted to Rs 104.5 crore, Rs 27 crore was earmarked for relief and rehabilitation, Rs 12 crore for health and education, and Rs 22 crore for pension and interest payments. Consider the attention it received: 26% of the total non-defence expenditure, that is, more than twice the amount allocated for education, health, and medical services combined!
What Will Union Budget 2025 Have For Different Sectors? DeepSeek Answers
We asked the DeepSeek chatbot, "What should the Indian Union Budget 2025 be like?" The AI startup said it may be challenging to predict the exact details of the Budget, but based on the current trends it generated a 600-word text on the key areas the budget may focus on.
On Rural Development
The government may expand direct income support schemes for farmers, like PM-KISAN, according to DeepSeek. It may come up with policies for better implementation of Minimum Support Price (MSP) to help the farmers.
On Healthcare, Education
Funding may be raised for the centre's flagship health insurance scheme Ayushman Bharat. The government may also increase allocation for the implementation of the National Education Policy 2020, skill development, and research and development.
On Climate Change
The budget may focus on providing incentives for renewable energy projects as the country aims to achieve net-zero emissions by 2070. This may include tax benefits and subsidies on EV manufacturing, DeepSeek said. Other areas of focus may be water conservation and waste management, for which funding may be increased.
What PM Modi Said On Poor, Middle Class On Budget Eve
Ahead of the start of the Budget Session, Prime Minister Narendra Modi said India will fulfil its aim of Viksit Bharat and this Budget Session will give new energy and hope to the nation.
In his customary address to the media before the beginning of a new session, PM Modi said, "Ahead of the Budget Session, I bow down to Maa Lakshmi, the goddess of wealth and prosperity.."
Reminiscing the Maha Lakshmi mantra, PM Modi said that he prays to the Goddess to have special blessings on the poor and the middle class.
Why Was The 1973-74 Budget Called "Black Budget"?
While Manmohan Singh's 1991 Union Budget ended the Licence Raj, opening the Indian economy to the world, P Chidambaram's presentation was labelled a "Dream Budget" for the relief it brought to the taxpayer.
The same couldn't be said about Indira Gandhi's 1973-74 Budget, which, in the annals of Indian economic history, is referred to as the "Black Budget".
Presented by Yashwantrao B Chavan, the then Finance Minister, the Budget received the infamous nickname due to the massive fiscal deficit of Rs 550 crore, an unprecedented figure which underscored the country's economic challenges.
