Budget 2025 LIVE: Minister Nirmala Sitharaman presents record 8th Budget, tax cut expectations high

Budget 2025 LIVE: Finance Minister Nirmala Sitharaman is set to present her eighth consecutive Budget, while expectations of income tax rate cuts are high, this will be the first full-year Budget in the Modi government’s third term and will attempt to balance economic growth with fiscal prudence.

Income tax cut expected

As long as prices and wage growth remain stable, the middle class has high hopes of tax relief. Analysts have also predicted possible adjustments in tax slabs to boost disposable income and consumption. Notably, Prime Minister Narendra Modi’s invocation of Goddess Lakshmi on the eve of the Budget session has further fuelled these expectations of a middle-class-friendly Budget.

Economic backdrop and key focus areas

India’s economic growth has fallen to a four-year low, as global geopolitical uncertainties peak with the possibility of new trade tariffs under US President Donald Trump. Against this backdrop, this budget will focus on boosting domestic consumption, giving further impetus to investment, and job creation.

“Private consumption has seen a significant increase in the first quarter, with investment activity improving marginally. With the elections concluded, government spending is expected to pick up in the coming quarters, boosting economic growth,” said Rumki Majumdar, economist at Deloitte India.

Continuing the ‘bahi-khata’ tradition

Sitharaman arrived in Parliament carrying a digital tablet enclosed in the traditional ‘bahi-khata‘ pouch, continuing a tradition she started in 2019, when she replaced the colonial-era budget briefcase. The shift to a paperless budget was first introduced in 2021 during the pandemic and has been maintained since then.

Policy expectations: Infrastructure, exports and welfare

Experts also expect more investments in infrastructure, skill development, and job creation. The government is likely to expand PLI and announce tariff cuts to boost local manufacturing and exports. Allocations for welfare schemes may also increase.

It’s the budget season, and all eyes are on Sitharaman to see what kind of economic growth she will bring into the system, whether fiscal consolidation will be effected, and what relief measures will be promised to the common citizen. Stay tuned for live updates on the highlights from Budget 2025.