Union Cabinet Approves 2025 Budget Ahead Of Parliament Presentation

The Union Cabinet, chaired by Prime Minister Narendra Modi, officially approved the 2025 Union Budget on Saturday, ahead of its presentation in Parliament. The approval followed the arrival of key Union Ministers, including Amit Shah, Rajnath Singh, Gajendra Singh Shekhawat, and Pralhad Joshi, at Parliament earlier in the day.

Union Minister Gajendra Singh Shekhawat spoke about the focus of the budget, stating, “The Budget will continue the efforts for the welfare of the country, especially the poor. It will be a novel and strong step toward achieving the resolve of making ‘Viksit Bharat’ (Developed India).”

Union Parliamentary Affairs Minister Kiren Rijiju emphasized India’s growing economy despite global challenges. He stated, “The country has witnessed economic growth despite global issues, and India is moving forward. Finance Minister Nirmala Sitharaman will present her eighth consecutive budget, and I am confident that it will create a positive environment.”

The Budget Process And Presidential Blessings

The Cabinet meeting occurred after Finance Minister Nirmala Sitharaman, carrying the traditional ‘Bahi-Khata’ (ledger), met President Droupadi Murmu. Sitharaman, accompanied by Minister of State for Finance Pankaj Choudhary and other ministry officials, received the customary ‘dahi-cheeni’ (curd and sugar) from the President, marking a symbolic gesture before the budget presentation.

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In her speech, Nirmala Sitharaman is set to present her record eighth consecutive budget. This budget will outline the government’s fiscal policies, proposals for revenue and expenditure, tax reforms, and other key announcements.

Union Minister Pralhad Joshi expressed confidence in the upcoming budget, stating, “Under PM Narendra Modi’s leadership, the budget has consistently been pro-people, pro-poor, and pro-middle class. This year will be no different.”

Economic Survey Projects Growth For FY26

Ahead of the budget presentation, the Economic Survey, tabled in Parliament on Friday, projected India’s economy to grow between 6.3% and 6.8% in the next financial year, 2025-26. The Survey highlighted the government’s focus on fostering long-term industrial growth by prioritizing research and development (R&D), supporting micro, small, and medium enterprises (MSMEs), and capital goods. These initiatives aim to enhance productivity, innovation, and global competitiveness.

According to the Survey, “The fundamentals of the domestic economy remain robust, with a strong external account, calibrated fiscal consolidation, and stable private consumption. We expect growth in FY26 to be between 6.3% and 6.8%.”

Inflation And Employment Outlook

The Economic Survey also projected that food inflation would ease by Q4 FY25, with a seasonal drop in vegetable prices and the arrival of the Kharif harvest. A strong Rabi production is expected to keep food prices in check during the first half of FY26. However, the report cautioned about risks to inflation from adverse weather conditions and rising global agricultural prices.

The Survey also noted India’s robust foreign exchange reserves, which now cover 90% of external debt and provide over ten months of import cover. As of January 2025, India’s reserves stood at USD 634.6 billion, down from USD 704.9 billion in September 2024.

Additionally, the formal employment sector showed significant growth, with Employees’ Provident Fund Organisation (EPFO) subscriptions more than doubling from 61 lakh in FY19 to 131 lakh in FY24.

Parliamentary Budget Session

The budget session of Parliament began on Friday, January 31, with a joint address by President Droupadi Murmu. The first part of the Budget session will continue until February 13, and Parliament will reconvene on March 10 after a brief recess, concluding on April 4.

As India moves forward with its economic policies and plans for the coming year, the presentation of the 2025 Union Budget promises to set the tone for further growth and development.