The Indian government is gearing up to start preparing the budget for the financial year 2025-26. This process, led by the Finance Ministry, will begin in the second week of October 2024. The budget will emphasize critical issues like employment generation, increasing demand, and reforms to maintain the growth momentum of the economy. India has recorded growth of over 7% for four consecutive financial years, and the upcoming budget aims to keep this progress going.
Pre-Budget Meetings to Begin in October
The Department of Economic Affairs has issued the Budget Circular 2025-26, marking the official start of budget preparations. Pre-budget meetings, chaired by the Secretary of Expenditure, will begin in mid-October 2024 and run through November 2024. These meetings will involve discussions on the fund requirements for various categories of expenditure, including capital and revenue expenditures, and will focus on the income and spending estimates of ministries and departments.
The Finance Advisor will ensure that all relevant data is updated in the Union Budget Information System (UBIS) by October 7, 2024, for review. The pre-budget discussions will help finalize the budget estimates for the financial year 2025-26.
Sitharaman’s Eighth Budget
This budget will mark Nirmala Sitharaman’s eighth consecutive budget as Finance Minister, a significant achievement in Indian politics. It will also be the second budget of the Modi government’s third term. Sitharaman’s leadership has been pivotal in shaping India’s economic policy over the years, and this budget is expected to continue focusing on reforms to maintain strong economic growth.
Review of Capital Expenditure
The Finance Minister recently reviewed the capital expenditure of key ministries, especially the Ministry of Housing and Urban Affairs. The main focus was on the Pradhan Mantri Awas Yojana (Urban), which addresses the housing needs of urban India. During this review, Sitharaman emphasized the importance of timely utilization of allocated funds to ensure projects move ahead efficiently.
Capital expenditure is essential for India’s long-term infrastructure growth, and ministries with significant allocations are being closely monitored. For the fiscal year 2024-25, a capital expenditure budget of Rs 28,628 crore has been allocated. The Finance Ministry is making efforts to ensure these funds are used effectively to fuel development projects across the country.
Focus on Reforms for Growth and Jobs
As the budget preparations progress, the government is expected to prioritize job creation and boosting demand across sectors. The economy has seen robust growth in recent years, and there is a strong push to maintain this momentum by focusing on employment opportunities and measures that can drive domestic consumption. The 2025-26 budget will likely include reforms to accelerate economic growth, ensuring that India continues its upward trajectory.
The Finance Ministry’s detailed review process and meetings will play a crucial role in shaping the final budget, which is expected to reflect the government’s growth-oriented agenda.
