Union Minister of State for Finance, Pankaj Chaudhary, arrived at the North Block on Saturday, ahead of the much-anticipated presentation of the Union Budget. Speaking to the media, Chaudhary urged the public to be patient, stating, “Everything will be before you by 12 pm. Have some patience. You will get to know everything.”
Union Finance Minister Nirmala Sitharaman is set to present her record eighth consecutive budget today at 11 am in the Lok Sabha. The budget speech will outline the government’s fiscal policies, revenue and expenditure proposals, tax reforms, and other key announcements.
In the lead-up to the budget, the Economic Survey, tabled in Parliament on Friday, projected India’s economy to grow between 6.3% and 6.8% in the 2025-26 financial year. The survey highlighted that India’s economic fundamentals remain strong, with a stable external account, fiscal consolidation, and robust private consumption supporting growth.
The government aims to strengthen long-term industrial growth through investments in research and development (R&D), micro, small, and medium enterprises (MSMEs), and capital goods. These measures are designed to enhance productivity, foster innovation, and boost global competitiveness.
“The fundamentals of the domestic economy remain robust, with a strong external account, calibrated fiscal consolidation, and stable private consumption. Based on these factors, we expect growth in FY26 to range between 6.3% and 6.8%,” the survey stated.
The survey also indicated that food inflation is expected to ease in the fourth quarter of FY25, thanks to a seasonal decline in vegetable prices and the arrival of the Kharif harvest. A strong Rabi harvest is also expected to help stabilize food prices in the first half of FY26. However, risks to inflation remain due to adverse weather conditions and rising international agricultural prices.
India’s foreign exchange reserves were also noted to remain strong, covering 90% of external debt and offering over ten months of import cover. Reserves increased 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. The stability in capital flows has been crucial in supporting the country’s external financial strength.
The survey also highlighted significant growth in formal employment, with Net Employees’ Provident Fund Organisation (EPFO) subscriptions more than doubling from 61 lakh in FY19 to 131 lakh in FY24.
