On Saturday, February 1, 2025, Union Finance Minister - Nirmala Sitharaman arrived at the Parliament with Union Minister of State - Pankaj Choudhary and some other officials. She attended the cabinet meeting where the Union Cabinet approved the budget after which the Finance Minister presented the Union Budget 2025 in Parliament.
Nirmala Sitharaman and Pankaj Chaudhary met President Droupadi Murmu at the Rashtrapati Bhavan ahead of the Union Budget. President Murmu offered 'dahi-chini' to the Union Finance Minister, a customary sign of wishing good luck. During their meeting, the Finance Minister was seen discussing the budget proposals with the President.
Nirmala Sitharaman was all set to present her 8th consecutive budget in the Lok Sabha. The budget outlines the government's fiscal policy, taxation reforms, revenue and expenditure proposals.
Meanwhile, the Economic Survey presented in Parliament on Friday has projected India's economy to grow from 6.3-6.8% in FY 25-26. The survey was completed a day before the union budget and highlighted that the country's economic fundamentals are strong as it was supported by a stable external account, fiscal consolidation, and private consumption. The government plans to strengthen long-term industrial growth by focusing on research and development, micro, small, and medium enterprises, and capital goods.
The survey noted that food inflation will likely be at ease in Q4 of FY25 due to a seasonal decline in vegetable prices and the arrival of Kharif crops. A good rabi production is also expected to keep food prices in check in the first half of FY26. However, adverse weather conditions and rising international prices of agricultural commodities could pose risks to inflation.
Furthermore, the survey added that India's foreign exchange reserves remain strong, covering 90% of external debt and providing an import cover of over ten months. The reserves increased from $616.7 billion in January 2024 to $704.9 billion in September 2024 before moderating to $634.6 billion as of January 3, 2025. This stability in capital flows has played a key role in supporting India's external strength. The survey also highlighted the significant growth in the formal employment sector. Net Employees' Provident Fund Organisation (EPFO) has doubled from 61 lakhs in FY19 to 131 lakhs in FY24.
On Friday, January 31, the budget session of the Parliament commenced with the joint address of President Droupadi Murmu. The first part of the budget session will continue till February 13 and the two Houses will again meet on March 10 after recess with the session finally concluding on April 4.
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Rahul Gautam
5 February, 2025