The finance ministry is set to kick off its pre-Budget meetings on October 10, focusing on a thorough review of six key ministries and departments, including New & Renewable Energy, and Skill Development & Entrepreneurship. These crucial discussions will extend until November 11, with the primary goal of finalizing budget allocations for the upcoming 2025-26 fiscal year while also revising financial estimates for the current fiscal period.
The meetings are strategically designed to ensure that each ministry’s funding requirements are accurately assessed and that their financial needs align with the government’s broader economic objectives. Notably, discussions will culminate with the Ministry of Railways and the Department of Health and Family Welfare, two critical sectors that play a significant role in the country’s infrastructure and public health systems.
The Union Budget for 2025-26 is anticipated to place a strong emphasis on reforms aimed at stimulating economic growth, boosting job creation, and enhancing overall economic demand. Stakeholders are keenly watching for proposals that will foster innovation and development across various sectors, particularly those that are pivotal for India’s long-term economic sustainability.
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In accordance with the Budget circular released by the Department of Economic Affairs, it is stated that “Pre-Budget meetings chaired by the Secretary (Expenditure) will commence in the second week of October 2024. Financial Advisers must ensure that necessary details are entered into the Union Budget Information System (UBIS) by October 7, 2024.” This highlights the importance of timely and accurate data entry in preparing for the budgetary process.
This upcoming Budget will mark the second for the Modi 3.0 government and the eighth consecutive Budget presented by Finance Minister Nirmala Sitharaman—a rare distinction in Indian political history that underscores her sustained role in shaping the nation’s fiscal policies. The provisional Budget Estimates for 2025-26 will be finalized after the completion of these pre-Budget meetings, setting the stage for a comprehensive financial plan for the year ahead.
Throughout the meetings, officials will review the funding requirements across all categories of expenditures, ensuring that the needs of each ministry and department are adequately addressed. This includes a thorough examination of receipts from various ministries, which will inform the net expenditure estimates. Additionally, the discussions will encompass receipts from departmentally-run commercial undertakings, which are factored against gross expenditures, alongside evaluations of non-tax revenues, including any outstanding arrears.
The Budget for 2025-26 is projected to be presented on February 1, falling within the first half of Parliament’s Budget session, which typically commences in the last week of January. This timing is critical, as it allows for prompt allocation of funds to ministries at the beginning of the financial year starting in April. The current fiscal year’s Budget anticipated a nominal GDP growth of 10.5%, with a fiscal deficit projected at 4.9% of the gross domestic product (GDP).
In a significant shift from tradition, the Modi government eliminated the colonial-era practice of presenting the Budget at the end of February. This change, introduced by former Finance Minister Arun Jaitley in 2017, established February 1 as the new presentation date. This reform has facilitated ministries in accessing their allocated funds promptly at the start of each financial year, thereby improving financial planning and execution.
As the pre-Budget meetings approach, there is a palpable sense of anticipation regarding the policy directions and allocations that will emerge, with stakeholders eager to see how the government plans to address pressing economic challenges and capitalize on opportunities for growth.
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