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HomeTop NewsUnion Cabinet Approves 2025 Budget As Economic Survey Projects Strong Growth

Union Cabinet Approves 2025 Budget As Economic Survey Projects Strong Growth

New Delhi [India]: The Union Cabinet, led by Prime Minister Narendra Modi, approved the Budget for the year 2025 on Saturday, ahead of its presentation in Parliament.

Union Ministers Amit Shah, Rajnath Singh, Gajendra Singh Shekhawat, and Pralhad Joshi arrived at Parliament earlier in the day.

Union Minister Gajendra Singh Shekhawat remarked, “The Budget will be in continuity and will be for the welfare of the country, of the poor and will be a novel and strong step towards the resolve of making ‘Viksit Bharat’…”

Union Parliamentary Affairs Minister Kiren Rijiju added, “The country has witnessed that despite the world facing multiple issues, India’s economy is growing and the country is moving ahead. Nirmala Sitharaman is going to present her record number (8th) of the budget, and I hope that it’ll create a good environment…”

The Cabinet meeting took place after Finance Minister Nirmala Sitharaman, carrying a ‘Bahi-Khata’, met President Droupadi Murmu, accompanied by Minister of State for Finance Pankaj Choudhary and other officials. President Murmu greeted Sitharaman with the customary ‘dahi-cheeni’ (curd and sugar) before the budget presentation.

Sitharaman is set to present her record 8th consecutive budget today, outlining the government’s fiscal policies, revenue and expenditure proposals, taxation reforms, and other significant announcements.

Before the budget presentation, Union Minister Pralhad Joshi spoke to reporters, saying, “Ever since the economy of this country started being taken care of under the leadership of PM Narendra Modi, we have given pro-people, pro-poor, pro-middle-class budgets. It will be the same this time.”

Meanwhile, the Economic Survey presented in Parliament on Friday projected India’s economy to grow between 6.3% and 6.8% in the upcoming financial year 2025-26. The survey noted that the government plans to focus on research and development (R&D), micro, small, and medium enterprises (MSMEs), and capital goods to drive long-term industrial growth. These measures are intended to enhance productivity, innovation, and global competitiveness.

“The fundamentals of the domestic economy remain robust, with a strong external account, calibrated fiscal consolidation, and stable private consumption. On balance of these considerations, we expect growth in FY26 to be between 6.3% and 6.8%,” the survey stated.

The survey also predicted food inflation would ease in Q4 of FY25 due to seasonal declines in vegetable prices and the arrival of the Kharif harvest. A good Rabi crop is expected to keep food prices stable in the first half of FY26. However, it highlighted the risks posed by adverse weather conditions and rising international agricultural prices.

Additionally, the survey emphasized that India’s foreign exchange reserves remain strong, covering 90% of external debt and providing more than ten months of import cover. The reserves grew from USD 616.7 billion in January 2024 to USD 704.9 billion in September 2024, before moderating to USD 634.6 billion as of January 3, 2025. Stability in capital flows has been crucial in supporting India’s external strength.

The survey also highlighted a significant increase in formal employment, with net Employees’ Provident Fund Organisation (EPFO) subscriptions doubling from 61 lakh in FY19 to 131 lakh in FY24.

The budget session of Parliament commenced on Friday (January 31) with President Droupadi Murmu’s joint address. The first part of the Budget session will continue until February 13, with the two Houses reconvening on March 10 after a recess. The session will conclude on April 4.

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