The Union Cabinet, under the leadership of Prime Minister Narendra Modi, on Saturday approved the 2025 Budget ahead of its presentation in Parliament.
Earlier, key figures such as Union Ministers Amit Shah, Rajnath Singh, Gajendra Singh Shekhawat, and Pralhad Joshi arrived at Parliament for the important occasion.
Union Minister Gajendra Singh Shekhawat expressed, "The Budget will be in continuity and will be for the welfare of the country, of the poor and will be a novel and strong step towards the resolve of making 'Viksit Bharat'..."
Union Parliamentary Affairs Minister Kiren Rijiju added, "The country has witnessed that despite world-facing multiple issues, India's economy is growing and the country is moving ahead. Nirmala Sitharaman is going to present her record number (8th) of the budget and I hope that it'll be a good environment..."
The Cabinet meeting took place after Union Finance Minister Nirmala Sitharaman, carrying the traditional 'Bahi-Khata,' met with President Droupadi Murmu. Sitharaman was accompanied by MoS Finance Pankaj Choudhary and other ministry officials.
In a customary ritual, President Murmu offered 'dahi-cheeni' (curd and sugar) to the Finance Minister ahead of the budget presentation. Nirmala Sitharaman is all set to present her eighth consecutive budget today, which will cover a range of fiscal policies, proposals for revenue and expenditure, taxation reforms, and other key announcements.
Before her speech, Union Minister Pralhad Joshi remarked, "Ever since economy of this country started being taken care of under the leadership of PM Narendra Modi, we have given pro-people, pro-poor, pro-middle class budget. It will be the same this time."
Meanwhile, the Economic Survey tabled in Parliament on Friday forecast India's economy to grow between 6.3% and 6.8% for the 2025-26 financial year. The survey highlighted the government's intention to strengthen long-term industrial growth through research and development (R&D), micro, small, and medium enterprises (MSMEs), and capital goods, all aimed at boosting productivity, innovation, and global competitiveness.
The survey noted, "The fundamentals of the domestic economy remain robust, with a strong external account, calibrated fiscal consolidation and stable private consumption. On balance of these considerations, we expect that the growth in FY26 would be between 6.3 and 6.8 percent."
The survey also projected that food inflation would ease in the fourth quarter of FY25, thanks to the seasonal decline in vegetable prices and the arrival of the Kharif harvest. It also expects strong Rabi production to help stabilize food prices during the first half of FY26, although adverse weather and rising international agricultural prices remain inflation risks.
India’s foreign exchange reserves remain solid, covering 90% of external debt and offering an import cover of over ten months. Reserves increased from USD 616.7 billion in January 2024 to USD 704.9 billion by September 2024 before settling at USD 634.6 billion as of January 3, 2025. The stability of capital flows has been vital to India's external economic strength.
Additionally, the survey pointed to significant growth in formal employment, as the number of Employees' Provident Fund Organisation (EPFO) subscriptions more than doubled from 61 lakh in FY19 to 131 lakh in FY24.
The Budget session of Parliament began on Friday, January 31, with the joint address of President Droupadi Murmu. The first part of the session will continue until February 13, with both Houses reconvening on March 10 after a recess, concluding the session on April 4.
