The Indian Ministry of Finance is set to initiate the process for crafting the Union Budget 2025-26 starting in the second week of October, as the country records a 7 per cent growth rate for the fourth consecutive year.
In the lead-up to this crucial fiscal document, the government aims to push reforms that will further bolster economic momentum, create jobs, and stimulate demand across key sectors.
According to a circular from the Department of Economic Affairs, the pre-budget meetings, led by the Secretary (Expenditure), will commence in mid-October and are expected to run through mid-November.
Ministries and departments have been instructed to submit their data by 7 October, with details entered into the Union Budget Information System (UBIS) for verification. These meetings will serve as the foundation for finalising budget estimates for the next fiscal year, during which expenditure requirements, receipts, and non-tax revenues will be carefully assessed.
In addition to expenditure requirements, the meetings will evaluate the operations of autonomous bodies and implementing agencies. The government is also seeking justifications for the continued support of organisations with dedicated corpus funds, questioning whether certain grants-in-aid should be continued or wound up.
This upcoming budget will be the second of the Modi government's third term and will mark Finance Minister Nirmala Sitharaman's eighth consecutive budget—a rare accomplishment in Indian politics. The budget is expected to be presented on 1 February 2025, during the first half of the Parliament's Budget session, following a tradition established in 2017 to allow smoother financial planning and fund allocation at the start of the fiscal year.
For the current fiscal year, the government had projected a nominal GDP growth of 10.5 per cent and set the fiscal deficit target at 4.9 per cent of GDP. The earlier presentation of the budget, which has been in place since 2017, has enabled government departments and companies to adjust to spending and taxation changes more efficiently.
