New Delhi, Jan 31 (IANS): The unveiling of the Economic Survey on Friday sets the stage for Finance Minister Nirmala Sitharaman to present the Union Budget for 2025-26 in Parliament on Saturday (February 1), which is expected to continue the government's policy of giving a big push to economic growth with equity.
The government has prioritised improving the quality of life in rural areas to ensure equitable and inclusive development, according to the Economic Survey 2024-25.
The survey highlights financial inclusion as a key focus, with rural households and small businesses getting easier access to credit through microfinance institutions, self-help groups and other intermediaries.
It outlines key initiatives in infrastructure, rural housing, sanitation, clean fuel, social protection, and connectivity, along with efforts to boost rural livelihoods.
Accordingly, the agriculture and rural sectors are expected to get increased allocations in the Budget as are welfare schemes to uplift the poor.
The Finance Minister is also expected to continue with the government’s policy of stepping up investments in big-ticket infrastructure projects to spur growth and create more jobs in the economy in the Budget for 2025-26.
The Economic Survey has also highlighted that a significant investment in infrastructure is required over the next ten years to achieve India’s development goals. While there are varying estimates on the exact amount needed, there is general agreement that current spending on infrastructure must increase to meet these goals. With this in mind, the government has placed a strong focus on infrastructure over the past five years. As a result, capital spending by the central government on major infrastructure sectors has grown at an average rate of 38.8 per cent from FY20 to FY24, the survey has pointed out.
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 for those opting for the new tax regime, the limit is fixed at Rs 3 lakh.
The lower income tax burden would place more disposable income in the hands of the people to accelerate demand and give a further fillip to growth.
The economic survey has also highlighted that rising private consumption is playing a key role in helping India’s domestic economy remain steady amidst global uncertainties.
Besides, some changes in customs duties to correct the inverted duty structure in some items to help domestic manufacturing also appear to be on the cards. The tweaking of customs duties would be aimed at raising tariffs on finished goods while reducing duties on inputs.
After the unveiling of the Economic Survey, India's Chief Economic Advisor V. Anantha Nageswaran said on Friday that the country will have to rely on domestic growth drivers as "the era of globalisation, faster and larger movement of trade and goods and services is behind us".
Finance Minister Sitharaman will deliver the budget speech in the Lok Sabha from 11 a.m. on Saturday. The Budget Session of Parliament which commenced on Friday will be conducted in two phases - the first started on January 31 and will conclude on February 13 while the second phase will begin on March 10 and end on April 4.