Budget 2025 Preparation Kicks Off: Meetings Launching Mid-October

Union Budget 2025: Preparing for Economic Growth

The Finance Ministry of India is set to kick off the process of drafting the Union Budget for the financial year 2025-26, starting from the second week of October 2024. With the Indian economy demonstrating a robust growth rate of 7% or more for four consecutive financial years, this upcoming budget aims to introduce reforms focused on enhancing economic growth, generating employment opportunities, and boosting demand across various sectors.

Budget Circular Highlights

The Department of Economic Affairs has issued a Budget Circular for 2025-26, outlining crucial steps leading to the formulation of the budget. The circular indicates that pre-budget meetings, chaired by the Secretary of Expenditure, will commence in the second week of October. Financial Advisors are expected to ensure that all necessary data is submitted to the Union Budget Information System (UBIS) by October 7, 2024. Additionally, hard copies of the data in specified formats are required for verification purposes.

Nirmala Sitharaman’s Eighth Budget

This budget will mark the second budget presented during the third term of Prime Minister Narendra Modi’s government, and it will be the eighth consecutive budget delivered by Finance Minister Nirmala Sitharaman. Following the completion of the pre-budget meetings, provisional budget estimates for the financial year 2025-26 will be finalized. These discussions will commence in mid-October and are expected to conclude by mid-November 2024.

Addressing Currency Shortages

A pressing concern leading up to the budget is the significant shortage of currency notes, specifically denominations of 10, 20, and 50 rupees. Karnataka Congress MP B. Manickam Tagore has raised an alarm regarding this issue, emphasizing its adverse impact on rural and economically weaker sections of society, who depend heavily on these denominations for daily transactions and livelihood.

The Role of Pre-Budget Meetings

Pre-budget meetings are crucial as they facilitate an in-depth discussion regarding the funding requirements across various government categories, covering both expenditure and receipts for different ministries and departments. Additionally, evaluations of receipts from departmentally operated commercial undertakings will also take place. This collaborative approach is designed to ensure a balanced budget that addresses the needs of the economy while managing national revenues effectively.

Expected Presentation of the Budget

The presentation of Budget 2025-26 is anticipated to occur on February 1, 2025, coinciding with the first part of the Budget Session in Parliament. Typically, the Budget Session begins in the last week of January, serving as a platform for discussing new economic policies and fiscal strategies aimed at fostering growth and stability.