The Union Budget 2025 will be presented on February 1 at 11 AM. The Budget Session will have two parts: January 31 to February 13 and March 10 to April 4. The BSE and NSE stock markets will stay open on February 1, even though it’s a Saturday.
1. Focus Areas of Budget 2025:
Tax Reforms:
- New income tax slabs under consideration, with expectations of raising the exemption limit for salaried individuals to ₹10 lakh.
- Relief for high-income earners by capping the surcharge on income above ₹1 crore at 15%.
- Increased tax-free threshold for gifts from ₹50,000 to ₹1,00,000.
- Tax breaks for Web3 startups to foster innovation in blockchain and attract top talent.
Public Capex and Infrastructure Development:
- Continued focus on infrastructure allocation to boost economic recovery and employment creation.
- Special emphasis on logistics, with calls for subsidies and digital platforms under the National Logistics Policy (NLP).
Economic Growth:
- Expected GDP growth for FY25: 6.4% (4-year low).
- Revised inflation forecast for FY25: 4.8% (up from 4.5%).
- Fiscal prudence targeted, maintaining sub-4.5% fiscal deficit by FY26.
2. Sector-Specific Expectations
Technology and Web3 Startups:
- Tax benefits to support innovation in blockchain and emerging tech sectors.
- Dedicated funding for blockchain projects to boost adoption.
Healthcare:
- Increased investment to upgrade hospital facilities and acquire advanced equipment.
- Subsidies for surgical simulators and support for innovations in treatments and technologies.
- Incentives for public eye health programs and NGOs working in preventive and curative care.
- Duty waivers on imported eye-care technology and encouragement of domestic manufacturing.
Electric Vehicles (EVs):
- Addressing GST disparity by aligning standalone battery GST (18%) with EVs (5%) to reduce costs for commercial EV drivers.
- Encouraging EV adoption to support gig workers and drive clean mobility at grassroots levels.
Logistics:
- Enhanced investment in freight corridors and AI-based digital platforms.
- Simplification of GST compliance and FASTag processes.
- Support for truck aggregator platforms to streamline operations and improve efficiency.
- Skills training and development for drivers and logistics professionals.
3. Key Challenges and Government Goals:
- Balancing growth and inflation dynamics amidst global and domestic economic challenges, including weak exports and INR depreciation.
- Aiming to stimulate consumption and revive GDP growth through targeted measures.
- Maintaining nominal GDP projections and healthy growth in direct tax collections while addressing potential indirect tax setbacks.
Summary:
Budget 2025 is expected to prioritize tax reforms, infrastructure development, and sector-specific policies while addressing economic challenges through fiscal prudence and targeted measures to boost consumption, innovation, and employment.
