Budget 2025: Parliament Session to Start Jan 31; Key Details

Budget 2025: Parliament Session for Union Budget FY26 to Commence January 31

Parliament Session Dates Announced

The dates for the Budget sessions in Parliament have been announced. The Parliamentary session will commence on January 31, 2025, and will conclude on April 4. The main Budget FY26 announcement is scheduled for February 1st. The session will be divided into two parts: the first session will run from January 31 to February 13, 2025, and the second will be from March 10 to April 4.

President's Address and Finance Minister's Presentation

President Droupadi Murmu will address a joint session of Parliament in the Lok Sabha Chamber on January 31, 2025, at approximately 11:00 AM in New Delhi. Following this, Finance Minister Nirmala Sitharaman will present her eighth Budget as FM on February 1st. She has now surpassed the record of former PM Morarji Desai for presenting the most Budgets in India, having delivered six annual budgets and two interim budgets.

Expectations for Union Budget 2025

Indranil Pan, Chief Economist at YES BANK, stated that managing fiscal numbers is not expected to be a significant challenge this year, citing the potential for another strong RBI dividend to support the government's fiscal consolidation plans. The focus of this budget is expected to be on driving both short-term and long-term structural growth. The Central government is likely to maintain its emphasis on capital expenditure, given the slow pace of private investment. Some relief for lower-income groups may also be included. Efforts will be directed toward improving employment generation schemes and scaling up the internship program from last year. The agricultural sector will also need attention, particularly in strengthening the value chain and improving productivity.

Meanwhile, ICRA anticipates a fiscal deficit target of 4.5% of GDP for FY2026, compared to the 4.8% expected for FY2025 (RBE: 4.9% of GDP), with a capital expenditure growth of 12-13%, amounting to approximately ₹11 trillion. The FY2026 Union Budget should also emphasize capital expenditure, employment, skilling, and manufacturing capacity, while also adhering to fiscal consolidation.

What is the Union Budget?

The Union Budget is a financial statement released by the Indian government that accounts for its expenses in one fiscal year. It includes various documents providing a complete understanding of the government's finances, along with details of taxes levied by the government. All budget documents can be found on the Ministry of Finance's official website, as per HDFC Bank's website.

Key Budget Concepts

According to Kotak Securities, key concepts of the Budget include:

• Fiscal Deficit: The shortfall between the government's income and expenditure.
• Direct Taxes: Taxes imposed directly on citizens, such as income tax and corporate tax.
• Indirect Taxes: Taxes imposed on suppliers or manufacturers that are passed on to consumers, such as the Goods and Services Tax (GST).
• Non-Plan Expenditure: Expenditure on interest payments, defense, subsidies, police, pensions, and other services.
• Plan Expenditure: Expenditures on the Central Plan and Central Assistance to states and union territories.

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