Union Budget 2025 Live Updates: Nirmala Sitharaman Begins Speech, Opposition Walks Out

Finance Minister Nirmala Sitharaman said that there currently over 1 crore MSMEs employing 7.5 crore people. “To improve access to credit, the credit cover will be enhanced. For micro and small enterprises, it will be increased from Rs 5 crore to Rs 10 crore. For startups, it will be increased to Rs 10 crore. For well-run exporter MSME, term loans of Rs 20 crore will be granted,” she said.

Further, a new scheme will be launched for 5 lakh SC/ST and women first-time entrepreneurs, where they will be given term loans. The scheme will provide loans of Rs 2 crore for women, SC, ST first-time entrepreneurs.

Kisan Credit cards will facilitate short term loans for farmers, with the loan limit to be enhanced from Rs 3 lakh to Rs 5 lakh. Further, the government will bring in enabling framework for sustainable harnessing of fisheries from Indian exclusive economic zones and high seas with special focus on Andaman & Nicobar, and Lakshwadeep islands, Nirmala Sitharaman said.

PM Dhan Dhanya Krishi Yojana will bolster irrigation and will cover 100 districts. This programme will help 1.7 crore farmers in building rural prosperity and will launched in partnership with states. The goal is to generate ample opportunities in rural areas. It will improve availability of short-term and long-term credit.

The government will launch a 6-year mission for self-reliance in pulses and a comprehensive programme for vegetables, fruits to be launched, Nirmala Sitharaman said. The board will focus on tur, masoor and urad dal. Further, a makhana board will be set up in Bihar.

The scheme’s aims is to ample opportunities for rural areas so migration is an option, not a necessity.

A National Mission on high-yielding seeds will be launched, the Finance Minister said. Additionally, a five-year mission for cotton productivity will be launched.

Led By Samajwadi Party chief Akhilesh Yadav, the Opposition party walked out of the Parliament as Nirmala Sitharaman began her Budget speech.

Delhi: On #UnionBudget2025 Samajwadi Party Chief Akhilesh Yadav says, “The budget is being presented today, but it should not disappoint the common people…” pic.twitter.com/MRozGKfhKS

— IANS (@ians_india) February 1, 2025

The Budget 2025-26, a per Nirmala Sitharaman, looks to 

As the nation gears up for the Union Budget 2025, here are key terms you must know before tomorrow’s presentation. 

Fiscal Deficit

A fiscal deficit is the difference between the total expenditure and total revenue of the government in a financial year. If there is a high fiscal deficit, it means the government is spending more than it earns and needs to borrow money to bridge this gap.

Tax Reforms

Tax reforms refer to changes and improvements in the tax system to make it more efficient, transparent, and fair. The government implements these reforms to make tax laws simpler. For example, in 2017, the government introduced GST and replaced multiple indirect taxes like VAT, Service tax, and excise duty.

Read full cheat sheet here

Direct Effects:

Indirect Effects:  

The industry’s expectations from the government from the Budget: 

Employment: The introduction of employee-linked incentive schemes and clarification on the implementation of new central labour codes are urgently needed.

National Retail Trade Policy: The swift adoption of this policy is essential to foster the growth of various retail formats and reduce regulatory burdens.

Finance: The provision of affordable financing and lower interest rates for small retailers is key to nurturing sector stability and expansion.

Digital Infrastructure: Continued support for initiatives like Digital India is expected, with policies that ensure fair competition between online and offline retailers and government investment in digital infrastructure to enhance e-commerce and retail technology.

Every Budget season, the most-asked question remains the same – does it have anything for the salaried class? With Finance Minister Nirmala Sitharaman set to present Budget 2025-26 on February 1, the salaried class is again looking out if the government has any plans to reduce their financial burden.

Economists have suggested that the government this time offer a higher tax exemption limit and an increased standard deduction under the new tax regime, which would benefit a lot of taxpayers. In the last Budget, the standard deduction was increased to Rs 75,000 from Rs 50,000 while the exemption limit stands at Rs 3 lakh under the new regime.

Read more here

Introduction of wealth tax in the 1957-58 Budget

The 1957-58 Budget, presented by Finance Minister TT Krishnamachari, introduced a landmark reform – the wealth tax. For the first time, individuals were taxed on the value of their personal assets. The shift marked a new approach to taxation, aimed at reducing economic inequality by taxing the wealthy. The wealth tax remained in place for decades before it was scrapped in 2015.

The ‘Black Budget’ of 1973-74

The 1973-74 Budget, presented by Yashwantrao B Chavan, is remembered as the “Black Budget” for its staggering fiscal deficit of Rs 550 crore. India was grappling with serious economic challenges, including rising oil prices and food shortages. The Budget laid bare the country’s economic difficulties, and it was a precursor to the political and economic turbulence that followed, including the declaration of the Emergency in 1975.

Read more here

Nirmala Sitharaman has been supported by a skilled team of experts, each playing a crucial role in shaping the economic roadmap. 

Here are the key figures behind the Budget-making process:

India’s first Union Budget was presented on April 7, 1860, by James Wilson, the finance member of the Indian Council and the founder of The Economist newspaper. At the time, India was under British colonial rule, and the Budget was a response to the financial difficulties faced by the British administration following the First War of Indian Independence in 1857 (Sepoy Mutiny).

In the wake of the failed rebellion, Queen Victoria sent James Wilson to India to reform the financial system, introduce a tax structure, and implement a new paper currency. One of his key initiatives was the introduction of income tax, which continues to be a significant source of government revenue today.

The Union Budget is traditionally presented by the Finance Minister in the Lok Sabha every year, as mandated under Article 112 of the Constitution. But there have been occasions when the Prime Minister had to step in and table the Budget.

The first time this happened was in 1958 when Jawaharlal Nehru presented the Budget, after Finance Minister T.T. Krishnamachari was forced to resign following allegations of corruption and fraud in the Mundhra scam.

Morarji Desai, who served as Prime Minister from 1977 to 1979, tabled it in 1978 after the resignation of Finance Minister C. Subramaniam.

Former Prime Minister Indira Gandhi also presented the Budget in 1970 when Morarji Desai resigned as Finance Minister in 1969.

Similarly, Rajiv Gandhi also tabled the Union Budget for FY 1987-88 after V.P. Singh stepped down as Finance Minister.

Parliament’s Budget Session will held from January 31 to April 4.

The first part of the Budget Session will have nine sittings from January 31 to February 13 when Prime Minister Narendra Modi will respond to the Motion of Thanks on the President’s address and Sitharaman will reply to the discussion on the budget.

Parliament will then break for recess to examine the budget proposals and meet again from March 10 to discuss the demands for grants of various ministries and complete the budgetary process.

While Lok Sabha has provisionally allotted two days (February 3-4) for discussion on the Motion of Thanks to the President’s address, Rajya Sabha has earmarked three days for the debate.

The session will conclude on April 4. The entire budget session will have 27 sittings. 

The government has listed 16 Bills, including the Waqf (Amendment) Bill, besides the financial business for the Budget session. Some of the other key bills listed for the session include the Banking Laws (Amendment) Bill, The Railways (Amendment) Bill, The Disaster Management (Amendment) Bill, The Oilfields (Regulation and Development) Amendment Bill, The Protection of Interests in Aircraft Objects Bill, and The Immigration and Foreigners Bill.

The leak of the Budget in 1950 remains one of the earliest and most significant instances in India’s history. The event took place during the tenure of Finance Minister John Mathai, under the leadership of Prime Minister Jawaharlal Nehru.

At that time, the printing of the Budget took place at the Rashtrapati Bhavan, which is the official residence of the President of India. After the leak, the venue for printing the Budget was shifted to a government press on Minto Road in Delhi to maintain secrecy. 

Later, in 1980, the North Block basement at the capital’s Secretariat Building became the permanent location for printing Budget papers.

Over the last decade, India’s sustained focus on infrastructure development, job creation and the rising middle class with higher disposable income has significantly improved its global economic standing, moving it from the 10th rank by GDP in 2014 to the fifth-largest today.

As the Indian economy aims to overtake Japan and Germany to be No. 3 in the world in three to four years, here’s a bold prediction: our aviation and aerospace industry can fly us there sooner – as early as fiscal 2027. It is time for us to think bigger about airlines, airport infrastructure and aerospace manufacturing, and maintenance, repair, and operations (MRO) and how they can be transformational for India.

Read the opinion by Vikram Rai here

Delhi: Union Finance Minister Nirmala Sitharaman meets President Droupadi Murmu at Rashtrapati Bhavan before presenting the #UnionBudget2025. President Droupadi Murmu feeds ‘Dahi-Cheeni’ to Nirmala Sitharaman ahead of Budget speech
(Video Source: DD News) pic.twitter.com/Q9YZcExV6I

— IANS (@ians_india) February 1, 2025

There may be concessions for the middle class, which is pinning hope on a reduction in income tax rates, along with a hike in standard deduction. Under the old tax regime, the basic income exemption limit is set at Rs 2.50 lakh, while in the new tax regime, the limit is Rs 3 lakh.

With the Economic Survey seeking financial inclusion for rural households and small businesses as a priority area, Nirmala Sitharaman may announce easier access to credit through microfinance institutions, self-help groups and other intermediaries.

Revisiting tariff structures to support domestic manufacturing and reduce dependency on imports while helping manage exchange rate pressures are likely.

There is a very strong likelihood of Ms Sitharaman announcing policies and initiatives to accelerate progress in the field of artificial intelligence (AI).

Economists expect the Union Budget will unveil tariff reforms and consider a concessionary tax rate for new manufacturing facilities in India, both of which would address emerging global challenges but could have mixed implications for the domestic economy.

A decision likely to be taken with an eye on US policies is some sort of corporate tax relief.

Many analysts agree on one thing – the government will continue on the path of fiscal consolidation, with a projected fiscal deficit of 4.5 per cent of the gross domestic product (GDP) for fiscal 2026.

The Budget preparation involves an intricate series of steps over several months.

The history of India’s Union Budget dates back to 1860, when British parliamentarian James Wilson presented it for the first time. It was solely printed in English, catering to the colonial administration and its English-speaking audience.

With India’s Independence in 1947, the government recognised the need to make such critical documents more accessible to a broader population. This led to several reforms over time, including the landmark decision to print the Budget in Hindi.

The Union Budget and Railway Budget were presented separately until 2017 when the government ended the 92-year-old practice and merged them. Arun Jaitley presented the first combined Budget for the fiscal year 2017-18, and since then the practice has become a norm.

The decision to merge the Railway Budget with the Union Budget was made in 2016, following the submission of a white paper titled ‘Dispensing with the Railway Budget’ by the NITI Aayog Committee chaired by Bibek Debroy. The paper was presented to Suresh Prabhu, calling for an end to the decades-old practice.

The merger of the Railway Budget with the Union Budget facilitated multimodal transport planning between highways, railways, and inland waterways and allow the Ministry of Finance greater elbow room for better allocation of resources.

The Budget can impact the rupee. Here are some ways:

Fiscal Deficit: A higher fiscal deficit can lead to more government borrowing, causing inflation and weakening the rupee. But a lower fiscal deficit boosts investor confidence and helps stabilise the rupee. 

Tax Policies: Tax changes, like higher capital gains taxes, can impact foreign investments. After the 2024 Budget increased taxes, foreign investors sold nearly $1 billion in Indian equities within two days, weakening the rupee.

Import Duties: Changes in import duties can impact the demand for foreign currencies. Higher import duties may lower dollar demand by reducing imports, helping stabilise the rupee. EY’s Chief Policy Advisor DK Srivastava suggested that raising import duties could help curb dollar demand and prevent the rupee from sliding further, PTI reported.

Market Sentiment: Budget announcements can affect investor sentiment. Positive policies can attract foreign investment, strengthening the rupee, while negative ones may lead to capital outflows and weaken the rupee.

The Direct Tax Code – a new income tax bill meant to simplify compliance for individual taxpayers – will be introduced separately, and not as part of the Union Budget 2025 to be delivered by Finance Minister Nirmala Sitharaman on Saturday morning, sources have told NDTV.

There had been reports the new tax code, or DTC, would be read out with the budget speech.

Talk of a new direct tax code emerged when Ms Sitharaman presented the full 2024/25 budget in July; then she had said the goal was to make current income tax laws simpler to read and understand, and reduce the number of pages of the I-T Act of 1961 by a staggering 60 per cent.

Startups in the country are once again looking towards the Modi 3.0 administration to streamline policies to propel the growth story. Here is what the Indian startup community anticipates from the upcoming budget:

When we think about government finances, taxes often come to mind. Income tax, GST, and customs duties are the most common examples. While these taxes are crucial to government revenue, they are not the only source of income.

Ahead of the Budget 2025, it’s essential to understand the diverse range of non-tax revenue streams the government relies on to fund its activities.

Some non-tax revenue sources are:

Earnings from government-owned enterprises,

Interest on loans,

Royalties from natural resources,

Dividends from investments, among others.

As the nation gears up for key announcements, one document that often gets overlooked but is incredibly valuable to understanding the government’s fiscal plans is the ‘Budget at a glance’.

The ‘Budget at a glance’ is a simple summary/overview of the Union Budget. 

The document helps the public quickly see the government’s priorities. It highlights how much money will go to important sectors such as education, healthcare, and infrastructure. It also shows the expected income from taxes and other sources, and how the government plans to manage the country’s finances.

The document is usually around 5 to 30 pages long and is concise and easy to read. It is usually available in PDF format after the announcement of the Budget in Parliament.

Finance Minister Nirmala Sitharaman called on President Droupadi Murmu ahead of the Budget presentation speech in the Parliament. The Budget 2025-26 got the President’s nod.

As Finance Minister Nirmala Sitharaman will present the Budget 2025 on Saturday at 11 am, experts anticipate that the government will focus on AI-driven initiatives. They suggest that Budget 2025 could provide a critical opportunity for the government to build on its progress in AI.

With past budgets laying the groundwork through initiatives such as the IndiaAI Mission, enhanced infrastructure support, and ethical AI frameworks, the focus should shift to implementation and expansion, they said.  

Hari Balaji, Partner in Technology Consulting at EY India, explained the progress and future directions of the IndiaAI Mission. According to him, the IndiaAI Mission, with a significant allocation of Rs 10.4k crore, aims to enhance AI computing capacity, research, and innovation. 

Read full story here

Ahead of the Union Budget 2025, the Institute of Chartered Accountants of India (ICAI) has proposed the introduction of joint taxation for married couples. Under joint taxation, a married couple would be treated as a single taxable unit, allowing them to combine their incomes when filing tax returns, similar to systems already in place in countries like the US and the UK.

The proposed tax slabs for couples filing jointly are:

Up to Rs 6 lakh: No tax

Rs 6-14 lakh: 5 per cent tax

Rs 14-20 lakh: 10 per cent tax

Rs 20-24 lakh: 15 per cent tax

Rs 24-30 lakh: 20 per cent tax

Above Rs 30 lakh: 30 per cent tax

Nirmala Sitharaman holds the record for delivering the longest Budget speech in India’s history. In 2020, her speech lasted 2 hours and 42 minutes.

Former Finance Minister Hirubhai M Patel delivered the shortest Budget speech in 1977-78. Mr Patel’s interim Budget speech contained just 800 words.

In 1991, Finance Minister Manmohan Singh delivered a Budget speech of 18,650 words. It’s still the longest Budget speech by word count.

John Maynard Keynes famously remarked, “In the long run, we are all dead”. But in the short run, without capital expenditure, we are all just stuck in a low-equilibrium growth trap.

Public investment in infrastructure, energy, and digital connectivity is the fundamental driver of productivity gains, crowding in private investment through enhanced factor mobility and network externalities.

Yet, capital expenditure is often treated like a countercyclical stimulus-announced with great fanfare but under-executed due to fiscal constraints and bureaucratic inertia. Without sustained capital formation, an economy risks stagnating in a high-cost, low-productivity equilibrium-effectively turning Keynes’ long-run fatalism into a self-fulfilling prophecy.

Read the opinion by Aditya Sinha here

The Ministry of Finance gave a report card on the achievements and progress made on last year’s budget announcements. The key announcements from the 2024-25 budget, including measures to simplify taxation, reduce litigation, and improve tax certainty, have shown notable progress.

Reduction in Litigation and Appeals: Introduction of the Vivad Se Vishwas Scheme, 2024, aimed at resolving pending income tax disputes.

Simplification of Capital Gains Taxation: Introduction of only two holding periods: one year for listed assets and two years for unlisted and non-financial assets.

Reassessment and Reopening of Cases: Assessments can now only be reopened beyond three years if the escaped income exceeds Rs 50 lakh, with a maximum period of five years.

Comprehensive Review of the Income Tax Act, 1961: Complete overhaul of the Income Tax Act, 1961, to make it concise and easier to understand. Over 6,500 suggestions have been received from stakeholders.

Nirmala Sitharaman’s journey from a middle-class upbringing to becoming one of the most powerful female leaders in Indian politics is a story of perseverance, intellect, and dedication.

According to the Ministry of Corporate Affairs, Nirmala Sitharaman was born on 18th August 1959 in the temple town of Madurai, Tamil Nadu. She did her schooling and her graduation in economics from Seethalakshmi Ramaswamy College in Tiruchirapalli. She went on to do her master’s in economics from Jawaharlal Nehru University, New Delhi. Indo-European textile trade was the focus of her draft PhD thesis.

Here Is All You Need To Know About Her Education, Career And Political Journey

Every Budget reflects the challenges of its time. During the Covid-19 crisis, the Budget focused on managing the pandemic’s impact, while the 2011 Budget dealt with the Eurozone debt crisis. The 2025 Budget also comes with its own set of challenges, both domestic and global.

Finance Minister Nirmala Sitharaman’s February 1 Budget is expected to address key economic challenges, particularly inflation. The Reserve Bank of India (RBI) works to keep inflation within its 2-6 per cent tolerance range.

India’s economic growth for FY 26 is expected to be 6.7 per cent, according to government data released last week. It was primarily driven by moderating food prices. Despite this easing, the inflation rate remains above the RBI medium-term target of 4 per cent.

The stock markets will remain open for trading on Saturday, February 1, when Finance Minister Nirmala Sitharaman presents the Union Budget. Trading hours will follow the standard schedule from 9.15 am to 3.30 pm, according to separate circulars issued by NSE and BSE.

Typically closed on weekends, stock markets occasionally operate on Saturdays for special events, such as the Union Budget. On February 1, 2020, and February 28, 2015, the Budgets were presented on Saturdays, and the market remained open.

With the Union Budget for FY26 scheduled to be presented on February 1, 2025, a report by Goldman Sachs underlined two key concerns for policymakers, the pace of fiscal consolidation and the government’s spending priorities.

The report highlighted that the upcoming budget will be crucial for balancing growth and fiscal discipline as India stands out for its high levels of public debt and fiscal deficit as compared with other emerging markets.

Goldman Sachs noted that the government is likely to keep the fiscal consolidation path intact, driven by the need to manage high public debt-to-GDP ratios. However, the report cautioned that this fiscal tightening could act as a drag on economic growth in the upcoming fiscal year.

Finance Minister Nirmala Sitharaman is set to present her eighth consecutive Union Budget on February 1. She has since delivered seven consecutive budgets along with one interim Budget in February 2024.

Morarji Desai, who served as finance minister from 1959 to 1963 and again from 1967 to 1969, holds the record for the most budgets presented by an individual – 10 in total, including two interim budgets.

P Chidambaram holds the record for presenting the second-highest number of Union Budgets, with a total of nine.

As the Union Budget 2025 approaches, the education sector is brimming with expectations for transformative initiatives to enhance learning infrastructure and accessibility. The previous year’s allocation of Rs 1.12 lakh crore to education prioritised digital learning, virtual labs, and the Digital University initiative. This year, experts are calling for continued investments to modernise the sector.

Geeta Jayanth, Principal of Chaman Bhartiya School, expressed hopes for increased funding for teacher training, experiential learning programmes, STEM labs, and smart classrooms.

The Budget allocation for education, employment and skilling in 2024 was Rs 1.48 lakh crore. Of this, the highest allocation of Rs 73,498 crore was made to the Department of School Education and Literacy. From 2015-2024, India has been allocating over 4 per cent of its GDP to education sector.  On the other hand, US spends 5 per cent while Canada, Japan and Germany spend 5.5 per cent, 3.6 per cent and 4.8 per cent respectively. 

A skilled and educated population will result in increase in the GDP of the country. Experts have noted that as per previous trends, all developed countries have diverted a large fund towards public education system.

Areas that need increased allocation include:

#WATCH | #BudgetSession | PM Narendra Modi says, “You must have noticed, since 2014, this is the first Parliament session, which saw no ‘videshi chingari’ (foreign interference) in our affairs, in which no foreign forces tried to ignite a fire. I had noticed this before every… pic.twitter.com/WWPDw0LGmS

— ANI (@ANI) January 31, 2025

The first budget of Independent India described the Partition (1947-48) as the “most poignant human tragedy” outside of war. To understand how it was tackled, let’s look at the allocations made for relief and rehabilitation.

Of the total non-defence expenditure planned for the year, which amounted to Rs 104.5 crore, Rs 27 crore was earmarked for relief and rehabilitation, Rs 12 crore for health and education, and Rs 22 crore for pension and interest payments. Consider the attention it received: 26% of the total non-defence expenditure, that is, more than twice the amount allocated for education, health, and medical services combined!

Read the opinion by Mayank Mishra here

We asked the DeepSeek chatbot, “What should the Indian Union Budget 2025 be like?” The AI startup said it may be challenging to predict the exact details of the Budget, but based on the current trends it generated a 600-word text on the key areas the budget may focus on.

On Rural Development

The government may expand direct income support schemes for farmers, like PM-KISAN, according to DeepSeek. It may come up with policies for better implementation of Minimum Support Price (MSP) to help the farmers.

On Healthcare, Education

Funding may be raised for the centre’s flagship health insurance scheme Ayushman Bharat. The government may also increase allocation for the implementation of the National Education Policy 2020, skill development, and research and development.

On Climate Change

The budget may focus on providing incentives for renewable energy projects as the country aims to achieve net-zero emissions by 2070. This may include tax benefits and subsidies on EV manufacturing, DeepSeek said. Other areas of focus may be water conservation and waste management, for which funding may be increased.

Read here

Ahead of the start of the Budget Session, Prime Minister Narendra Modi said India will fulfil its aim of Viksit Bharat and this Budget Session will give new energy and hope to the nation.

In his customary address to the media before the beginning of a new session, PM Modi said, “Ahead of the Budget Session, I bow down to Maa Lakshmi, the goddess of wealth and prosperity..”

Reminiscing the Maha Lakshmi mantra, PM Modi said that he prays to the Goddess to have special blessings on the poor and the middle class.

While Manmohan Singh’s 1991 Union Budget ended the Licence Raj, opening the Indian economy to the world, P Chidambaram’s presentation was labelled a “Dream Budget” for the relief it brought to the taxpayer.

The same couldn’t be said about Indira Gandhi’s 1973-74 Budget, which, in the annals of Indian economic history, is referred to as the “Black Budget”.

Presented by Yashwantrao B Chavan, the then Finance Minister, the Budget received the infamous nickname due to the massive fiscal deficit of Rs 550 crore, an unprecedented figure which underscored the country’s economic challenges.

Read here