Union Budget 2025-26 – Artifex.News https://artifex.news Stay Connected. Stay Informed. Sun, 01 Feb 2026 16:06:00 +0000 en-US hourly 1 https://wordpress.org/?v=7.0 https://artifex.news/wp-content/uploads/2026/05/cropped-cropped-app-logo-32x32.png Union Budget 2025-26 – Artifex.News https://artifex.news 32 32 Budget 2026: Over 9% rise in Home Ministry budget; Intelligence Bureau sees enhanced allocation https://artifex.news/article70578133-ece/ Sun, 01 Feb 2026 16:06:00 +0000 https://artifex.news/article70578133-ece/ Read More “Budget 2026: Over 9% rise in Home Ministry budget; Intelligence Bureau sees enhanced allocation” »

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Finance Minister Nirmala Sitharaman, right, addresses a press conference after presenting the Union Budget 2026-27, in New Delhi, Sunday, Feb. 1, 2026. Minister of State for Finance Pankaj Chaudhary is also seen.
| Photo Credit: PTI

The Ministry of Home Affairs (MHA) has seen an increase of 9.44% in the total allocation in the Union Budget 2026-27, which was announced on February 1. The overall budget has increased from ₹2,33,210 crore to ₹2,55,233.53 crore.

The Intelligence Bureau (IB) has seen an increase of ₹2,889 crore in budget from the ₹3,893 crore budget estimate in 2025-26 to ₹6,782 crore BE in 2026-27. The budget was revised to ₹4,193 crore in the current fiscal. The provision is for meeting the administrative expenses of the IB, which ensures national security by collecting and analysing information on internal threats, terrorist activities and potential security risks, the budget document said.

The upcoming Population Census 2027 has been allocated ₹6,000 crore. The first phase of the Census — Houselisting and Housing Census (HLO) will go on from April 1 to September 30, and the second phase of Population Enumeration will be completed in February-March 2027.

chart visualization

On December 12, 2025, the Union Cabinet had approved ₹11,718.24 crore for the Census activities. This will be the first digital Census and the first to enumerate caste in independent India. Around 31 lakh enumerators, mostly schoolteachers, will capture the data on their personal phones and will get ₹25,000 each as honorarium. First, private persons will also be engaged to assist the government officials with technical aspects in the forthcoming Census.

The second phase of Vibrant Villages Programme (VVP), which was approved by the Union Cabinet on April 4, 2025 for the comprehensive development of strategic villages along all international borders, has been allocated ₹300 crore in the 2026-27 fiscal.

The provision aims at the development of selected border villages to integrate the border population with the nation by creating better living conditions and adequate livelihood opportunities, including villages infrastructure development, road connectivity and other developmental works.

Infra for CAPF

A significant increase was witnessed in building projects and infrastructure for the Central Armed Police Forces (CAPF). The section saw an increase of ₹1,000 crore in allocation from ₹4,038 crore in 2025-26 to ₹5,040 crore in 2026-27.

An amount of ₹1,73,802.53 crore has been given to CAPFs such as the CRPF, BSF and CISF, responsible for internal security, border guarding and security of vital installations.

The government allocated ₹450.54 crore for the modernisation of State Police Forces and Crime and Criminal Tracking Network and Systems (CCTNS), while ₹3,610.80 crore was provided for Security Related Expenditure (SRE) and Special Infrastructure Scheme for Left Wing Extremist (LWE) Areas, as the Home Ministry has kept a deadline of March 31 for the eradication of Naxalism from the country.

The Interoperable Criminal Justice System (ICJS), one of the key pillars of the new criminal laws to integrate digital platforms enabling seamless data sharing among police, courts, prosecution, prisons, and forensic agencies has been allocated ₹550 crore in 2026-27, up from ₹300 crore in 2025-26.





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Centre’s allocations for justice-related schemes fluctuate https://artifex.news/article69218599-ece/ Wed, 19 Feb 2025 01:30:00 +0000 https://artifex.news/article69218599-ece/ Read More “Centre’s allocations for justice-related schemes fluctuate” »

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Only a fraction of the envisaged allocations was actually spent on justice-related schemes

The Central government has consistently reduced budget allocations to certain justice-related schemes and projects since 2019, shows the recently released India Justice Report 2025-26.

Data also show that not only have allocations reduced, but also, only a fraction of the envisaged allocations was actually spent on these schemes.

The Modernisation Fund for the State Police Forces was formed to assist special projects and schemes that would upgrade the infrastructure of States’ police as well as Crime and Criminal Tracking Network and Systems.

Chart 1 shows the Budget Estimates (BE), Revised Estimates (RE), and actual expenditure of the Modernisation Fund for the State Police Forces.

Chart appears incomplete? Click to remove AMP mode

The Centre estimated a budget of almost ₹900 crore for FY19. This declined to around ₹780 crore in BE for FY21. In FY26, it has come down to ₹587.97 crore (BE).

While these figures are for BE, RE show a drastic reduction in allocations. For instance, the ₹780 crore that was budgeted in FY21 was revised to ₹106 crore. Such over-estimations in BE and drastic downward revisions in RE can be seen across most years. In FY25, the allocation for the fund was estimated to be ₹520.51 crore and was revised in the following year to ₹160 crore.

More importantly, the amount actually spent was even lower than the RE in most recent years. Despite an allocation of more than ₹600 crore in FY23, only ₹34.7 crore was actually spent on the modernisation of State police forces. This is about 6% of the allocation. Similarly, only 20-25% of the budgeted amounts were spent in FY21, FY23, and FY24.

The newly introduced Modernisation of Forensic Capacities is aimed at improving forensic testing infrastructure across the country and addressing the shortage of forensic scientists.

Chart 2 shows the allocation of funds for the Modernisation of Forensic Capacities. There was a stark increase and then a decrease in allocations over the past few years for this scheme.

The Ministry of Home Affairs also introduced the Modernisation of Prisons Fund more than two decades ago, which aims to improve the living conditions of prisoners, renovate existing prisons, and build new cells.

Chart 3 shows the budgetary allocations for it.

Despite an initial increase in budgetary allocations for this scheme, which peaked at ₹400 crore in FY23, allocations have come down to ₹300 crore each in the last two years. Until FY23, the allocation was wholly utilised, after which only 44% of the budgeted fund was utilised.

Alternatively, the schemes related to the judiciary have seen an optimal utilisation of funds over the past few years.

Chart 4 shows the BE and RE of allocations to the National Legal Services Authority (NALSA) from FY19 to FY25.

Funds allocated to NALSA have increased since FY19, but have generally remained within the range of ₹150 crore to 200 crore, with the exception of the RE of FY24, during which it increased to ₹400 crore. NALSA has reported 100% utilisation of the budgeted amounts for all the years between 2018-19 to 2023-24.

Chart 5 shows the BE and RE of allocations for the development of infrastructure facilities for the judiciary from FY19 to FY26.

This is a centrally sponsored scheme that was developed to enhance the judicial resources of State governments. Similar to NALSA, this fund has been utilised almost to its full potential across the past five financial years, but has seen a decrease in allocation from ₹1,123.40 crore (FY25) to ₹998 crore (FY26).



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FII outflows show India offering higher returns to investors: FM https://artifex.news/article69230994-ece/ Mon, 17 Feb 2025 17:22:50 +0000 https://artifex.news/article69230994-ece/ Read More “FII outflows show India offering higher returns to investors: FM” »

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Union Finance Minister Nirmala Sitharaman speaks to the media after a Post-Budget interaction, in Mumbai on Monday. Union Minister of State for Finance Pankaj Chaudhary is also present
| Photo Credit: ANI

Foreign Institutional Investment (FII) outflows from India’s equity markets show that investors are booking profits, indicating investments in India are yielding good returns, Finance Minister Nirmala Sitharman said at a post-Budget media briefing in Mumbai on Monday (February 17, 2025).

“FIIs also go out when they are able to, or in a position to book profits. Indian economy today has an environment in which investments are also leading good returns. That’s also happening,” Ms. Sitharaman said, dismissing concerns that the Indian stock market had become less attractive for retail and foreign investors alike.


Also read: Union Budget 2025-26: Highlights from Nirmala Sitharaman’s post-budget presser

Underlining the volatility of foreign investors, Finance Secretary Tuhin Kanta Pandey said, “As you know that FIIs keep moving up and down depending upon where they want to really park themselves. And it is not true that FIIs are really moving from one emerging market to another.”

He further said that whenever there was a global uncertainty, “they are ready to go back to the U.S., where they belong.”

Acknowledging that there were demand-supply issues that need to be filled, he said that these were temporary and the Indian economy was resilient. He asserted that the financial sector cannot be in a bubble and the returns were eventually in the real sector, where there is less cause for worry.

The statements from the Finance Ministry assume importance in the context of continued FII outflows from India’s equity markets. Experts cite tariff uncertainty with the U.S., tepid corporate earnings and uncertain domestic growth as downside risks behind the volatility in FPI outflows.



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Parliamentary proceedings: Govt using almost entire borrowings in FY’26 towards capex, says Sitharaman in Lok Sabha https://artifex.news/article69207155-ece/ Tue, 11 Feb 2025 13:52:17 +0000 https://artifex.news/article69207155-ece/ Read More “Parliamentary proceedings: Govt using almost entire borrowings in FY’26 towards capex, says Sitharaman in Lok Sabha” »

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Union Finance Minister Nirmala Sitharaman speaks in the Lok Sabha during the Budget session of Parliament, in New Delhi, on February 11, 2025.
| Photo Credit: PTI

The Government is using almost the entire borrowing in 2025-26 towards financing capital expenditure, Finance Minister Nirmala Sitharaman said on Tuesday (February 11, 2025)

She said the effective capital expenditure in FY’26 is ₹15.48 lakh crore, which is 4.3% of GDP.


Also read | Budget 2025-26: A promising first step, but miles to go

The fiscal deficit target is 4.4% of the GDP for next fiscal.

“It indicates that the government is using almost the entire borrowed resources for financing effective capital expenditure. So the borrowings are not going for revenue expenditure or committed expenditure, or any of those kinds.

“It’s going only for creating capital assets. So, in effect, the government intends to use about 99% of borrowed sources to finance effective capital expenditure in the upcoming year,” she said in the Lok Sabha.

Replying to a discussion on General Budget 2025-26, Ms. Sitharaman said the Budget has come in a time of immense uncertainties, changes in the global macro-economic environment, stagnating global growth and sticky inflation.

The world’s scenario in the last 10 years turned 180 degrees, and making Budget is more challenging now than ever before, she said, adding Budget balances national development necessities with fiscal priorities. Ms. Sitharaman said inflation trend, particularly food, appears to be moderating.

“Inflation management receives the highest priority of this government. Overall, retail inflation is within the notified tolerance band of 2-6%,” Ms. Sitharaman said.

On the weakening of rupee against U.S. dollar, the Minister said various global and domestic factors are influencing the value of rupee against the U.S. dollar.

The Indian rupee has depreciated 3.3% against the U.S. dollar between October 2024 and January 2025, but the decline has been lower than that in some of its Asian peers.

South Korean Won and Indonesian Rupiah depreciated by 8.1 per cent and 6.9 per cent, respectively in this period.

Further, all G-10 currencies also depreciated during this period by more than 6 per cent with Euro and British Pound depreciating by 6.7% and 7.2%, respectively.

Ms. Sitharaman also said there has been no cut in transfer to states and ₹25.01 lakh crore will be transferred in FY’26.



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Union Budget is pro-rich, says Opposition https://artifex.news/article69193479-ece/ Fri, 07 Feb 2025 16:50:10 +0000 https://artifex.news/article69193479-ece/ Read More “Union Budget is pro-rich, says Opposition” »

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Trinamool Congress MP Abhishek Banerjee, Samajwadi Party MP Akhilesh Yadav, party MPs Dharmendra Yadav, Dimple Yadav and Anand Bhadauriya in the Lok Sabha during the Budget Session, in New Delhi on February 7, 2025.
| Photo Credit: ANI/Sansad TV

Terming the Union Budget “pro-rich”, Opposition members in the Lok Sabha on Friday (February 7, 2025) urged the Modi government to improve the condition of the common people, farmers and agriculture workers, youth, small and medium enterprises, among others.

Before the discussion on the Budget started, Congress members objected to the absence of Finance Minister Nirmala Sitharaman in the House. “It has been a convention that the Finance Minister is present at the time of the initiating the debate,” party leader K.C Venugopal pointed out.

Stating that there was no such parliamentary rule, the BJP’s Dilip Saikia, who was chairing the proceedings, pointed out that Minister of State for Finance Pankaj Chaudhary was present in the House.

As the Congress MPs rose to their feet, Speaker Om Birla took over the House proceedings and assured the protesting members that he would “ensure” that whenever Budget discussions took place in future, Ms Sitharaman would be present.

Initiating the discussion on the Union Budget in the Lok Sabha, Congress member from Patiala, Dharamvira Gandhi, claimed the Budget failed to address farmers’ grievances. Expenditure towards health and education was stagnating, he said, adding that the government had tried to maintain fiscal deficit at the cost of social sector schemes.

He also called it “unitary” in nature as the States were “not allowed to participate in the Budget-making process”. “It failed to address the grievances of the farmers,” Mr. Gandhi said, adding that the “misplaced priorities” of the government led to the closure of MSME units across the country.

‘Economic favouritism’

Trinamool Congress MP Abhishek Banerjee alleged that the NDA government had mastered the art of taking away from the poor and giving to the wealthy elite, “the reverse of Robin Hood”.

“For instance, the waiving of corporate loans worth thousands of crores using taxpayers’ money, while poor farmers struggling with debts are left to suffer. The government claims to have no money to increase subsidies on essential commodities, yet it slashes corporate tax rates, giving billionaires an even bigger slice of the pie. This is not economic justice. This is economic favouritism at its worst,” he said.

Congress member from Assam, Pradyut Bordoloi, said the Budget failed to address key issues such as inflation and unemployment, and urged the government to take steps to increase disposable income of the people.

Stating that the tax sops would benefit only two crore taxpayers, he asked the government to expand and strengthen food security, increase allocation to public distribution system (PDS), and universalise free ration distribution for the next two years. “Reduce GST on essentials like food, medicine and medical insurance,” he added

CPI (ML) Liberation MP Sudama Prasad said, “Pro-rich budget has been presented by the government. There is nothing for the poor and youth in the budget”.

Raising the issue of farmer indebtedness, Rajeev Rai of the Samajwadi Party said the government should consider announcing a debt waiver scheme for farmers.

The BJP MP from Jaipur Rural, Rao Rajendra Singh, claimed individual taxpayers had been given benefits of about ₹8.71 lakh crore in the last five years, while the corporate taxpayers got benefits worth about ₹4.53 lakh crore.

Janata Dal (United) MP Alok Kumar Suman and Chandan Chauhan of the Rashtriya Lok Dal said the Budget would benefit all sections of society.



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Tax cut won’t mitigate high prices for cancer, rare diseases medicines, say patient advocacy groups https://artifex.news/article69192777-ece/ Fri, 07 Feb 2025 14:33:49 +0000 https://artifex.news/article69192777-ece/ Read More “Tax cut won’t mitigate high prices for cancer, rare diseases medicines, say patient advocacy groups” »

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Photo used for illustration purpose only.
| Photo Credit: Getty Images/iStockphoto

The recent Union Budget announcement provided custom duty waivers to 36 exorbitantly priced cancer and rare diseases drugs, but patient advocacy groups highlight that the tax cut doesn’t tackle the underlying problem of high prices due to patent monopolies that block local production and offer very little to ease the financial hardship faced by patients. 

Medicines imported into India generally attract basic customs duty of 10%, while some categories of drugs attract a concessional rate of 5% or nil. 

“The Union Budget move is like a band-aid. The drugs that are listed for custom duty waiver are generally those that are not in local production, are under a patent monopoly and block generic competition,” said Leena Menghaney, lawyer and consultant, specialising in public health.

One example is a rare disease drug Risdiplam — over which a major patent dispute is being fought in the Delhi High Court and a compulsory licensing petition is pending before the Kerela High Court. This medicine is under a patent monopoly till 2035, and Roche has not granted any voluntary licence for its local production and supply at an affordable price. 

“This results in a lack of competition and an exorbitant and unaffordable price for persons living with spinal muscular atrophy,” said Ms. Menghaney. 

The MRP of the drug Risdiplam is over ₹6 lakh per bottle and even with discounts from Roche the drug costs over ₹2 lakh per bottle.  So, for a patient weighing more than 20 kg, a bottle will last only for 12 days and over the course of the year he/she will require approximately 30 bottles per year, amounting to ₹1,80,00,000 and with a discount ₹61,15,200 per patient/ per year. 

The custom duty waiver will not be enough to make the drug affordable to patients as envisaged by the government’s Rare Diseases Policy. 

Demand for generic production

Patients are demanding that generic production by Indian pharmaceutical manufacturers, as this could bring the price down by over 99% as production cost studies by experts suggest the drug Risdiplam could be made available for as low as ₹3,024 annually.

In the past, such measures have slashed the prices by introducing local generic versions of cancer drugs — by an astounding 97%.

Other expensive drugs now included in the category are Risdiplam (approximate cost for a month — ₹6,20,000), Obinutuzumab (price for 1000 mg vial – approximate ₹3,99,305). 

K.M. Gopakumar, senior research and legal adviser, Third World Network (TWN) said the customs duty might be in the range of between 5 and 15%. And eliminating the customs duty would not make certain drugs affordable. In the larger public interest, the government should publish the current MRP and apply import duty on these 36 medicines. That would bring clarity on how far the import duty elimination would result in affordable prices, he pointed out.

Nilesh Patel, managing director, Kashmik Formulations, said the move would marginally ease the financial burden on cancer patients and their families.



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A green signal for India to assert its health leadership https://artifex.news/article69184667-ece/ Wed, 05 Feb 2025 18:38:00 +0000 https://artifex.news/article69184667-ece/ Read More “A green signal for India to assert its health leadership” »

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‘It is our collective responsibility now to build on this momentum’
| Photo Credit: Getty Images/iStockphoto

The Union Budget 2025-26 lays a robust foundation for India to assert its leadership in global health care and innovation, with strategic announcements that bolster medical infrastructure, expand educational opportunities, and promote global collaboration.

With a ₹90,958 crore health-care allocation, the addition of 75,000 medical seats over the next five years, and investments in daycare cancer centres, India is poised to enhance both accessibility and quality of care. The country will add 10,000 medical seats in FY26 alone, underscoring its commitment to health-care excellence.

India’s health-care transformation

This Budget underscores India’s remarkable journey of progress, from the 1980s when it grappled with limited medical infrastructure, to its current status as a global health-care leader. The transformation has been nothing short of extraordinary.

Recently, the writer had the privilege of presenting two key recommendations to Prime Minister Narendra Modi: first, establishing India as the global health-care destination, and second, addressing the global shortfall of health-care professionals. It has been a delight to see both these ideas in action through the ‘Heal in India’ and ‘Heal by India’ initiatives. With streamlined visa processes, enhanced hospital infrastructure, and robust public-private partnerships, India is poised to become the preferred medical destination for international patients.

Simultaneously, the country is addressing the global shortfall of health-care professionals by training and deploying more doctors, nurses, and paramedics abroad. This will ensure that Indian expertise supports health-care systems worldwide while creating new opportunities for our skilled professionals.

Customs duty exemptions, tech outlook

Moreover, it is commendable that the growing burden of non-communicable diseases such as cancer has been acknowledged in this Budget. The establishment of 200 day-care cancer centres in district hospitals will bring specialised treatment closer to people, improving early diagnosis and better patient outcomes.

The customs duty exemption on 36 life-saving drugs, including those for cancer, rare diseases, and chronic conditions will lower the cost of treatments, in turn, benefiting thousands of patients across the country. Also, the addition of 13 new patient assistance programmes would also improve access to critical medications for patients, particularly those with chronic conditions.

The emphasis on Artificial Intelligence and digital health marks a pivotal moment for the future of India’s health care. The new National Centres of Excellence will spearhead innovation in diagnostics, treatment, and research, enabling India to develop cutting-edge solutions that enhance patient care.

The writer believes that the introduction of cutting-edge technologies to deliver quality health care has strengthened India’s position as a global health-care player. Both private and public hospitals have played an integral role in this progress. Apollo was the first hospital to launch Proton therapy for advanced cancer care in this part of the world and continues to attract patients from countries such as Australia and the United Kingdom to name a few.

Build on the momentum

This Budget clearly recognises the government’s vision for — and demonstration of bold leadership in recognising — health care as a pillar of national growth and development. From a country that once struggled to provide basic medical care, we have evolved into a nation offering world-class treatment to millions. Through the synergy of Heal in India, Heal by India, and innovation-driven care, we are shaping a future where India’s health-care system sets new global benchmarks.

It is our collective responsibility now to build on this momentum — by embracing technology, strengthening medical education, and ensuring that health care reaches every individual in need.

India is not just healing its own people; it is healing the world.

Dr. Prathap C. Reddy is Founder and Chairman, Apollo Hospitals



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A Budget that is forward-looking and growth-oriented https://artifex.news/article69173426-ece/ Sun, 02 Feb 2025 18:38:00 +0000 https://artifex.news/article69173426-ece/ Read More “A Budget that is forward-looking and growth-oriented” »

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The Union Budget 2025-26 is in line with the government’s sustained efforts over the past few years to bolster economic growth and development. The provisions of the Budget indicate the continuation of the government’s strategic approach toward economic expansion, fiscal prudence, and sectoral growth.

The multiplier effects of the IT cuts

One of announcements in the Budget that has been most widely welcomed is the significant cut in personal income-tax, with complete exemption extended to individuals earning up to ₹12 lakh per year. This limit will be ₹12.75 lakh for salaried tax-payers because of the standard deduction of ₹75,000. This is a major relief for the middle class, and is expected to have a multiplier effect on the economy.

Higher disposable income can trigger a virtuous cycle of higher consumption, increased demand, and improved business performance. This, in turn, will result in higher indirect tax collections and further economic expansion. Specifically, greater consumer spending will benefit industries such as retail, real estate, and automobile manufacturing, boosting employment opportunities.

Another key highlight of the Budget is the allocation of ₹11.2 lakh crore for capital expenditure for 2025-26, marking an increase of nearly 10% from the actual expenditure in the current fiscal year. This enhanced spending can drive infrastructure development, boost employment generation, and catalyse economic activity across sectors. And, of course, it strengthens the nation’s logistical and industrial backbone, ensuring long-term sustainable growth.

In a major thrust to manufacturing, the Finance Minister, Nirmala Sitharaman, has also announced the establishment of a National Manufacturing Mission. The aim is to promote the ‘Make in India’ initiative by covering small, medium, and large industries, providing policy support, execution road maps, and governance frameworks in collaboration with central Ministries and States. The mission is expected to enhance domestic capabilities, reduce import dependency, and encourage foreign investment. While the finer details are yet to be examined, it appears to be a well-conceived initiative. By streamlining regulatory processes, offering incentives, and creating an enabling business environment, this initiative has the potential to position India as a global manufacturing hub.

Focus on labour-intensive sectors

In consonance with the government’s commitment to job creation, the Budget is focused on labour-intensive sectors such as tourism, food processing and leather. These industries have historically been major employment generators and contribute substantially to India’s export earnings. By providing targeted incentives and streamlining regulations, the Budget aims to enhance productivity, improve competitiveness, and create new job opportunities in these sectors.

On the infrastructure side, we see the Budget focus on the maritime sector through the announcement of a new Maritime Development Fund. This will give a boost to the marine economy, especially in the coastal States of the country, creating growth opportunities for both trade and the blue economy-related segments. The Federation of Indian Chambers of Commerce and Industry (FICCI) has also noted with interest the plan for flight connectivity to 120 new destinations under a modified Ude Desh ka Aam Naagrik (UDAN) scheme as this too will enable new economic opportunities in newly connected regions of the country as emerging growth centres.

The Budget has introduced the Prime Minister Dhan-Dhaanya Krishi Yojana, a targeted initiative designed to enhance agricultural productivity and improve rural livelihoods. The programme will cover 100 districts with low productivity, moderate crop intensity, and below-average credit access, in partnership with State governments.

This initiative aims to promote crop diversification and sustainable agricultural practices, enhance post-harvest storage infrastructure, improve irrigation facilities, and facilitate access to credit. With an estimated 1.7 crore farmer-beneficiaries, this has the potential to transform the agricultural landscape, increase rural incomes, and drive economic activity in India’s hinterlands. Higher rural purchasing power will indirectly benefit the corporate sector, particularly those involved in consumer goods and agricultural supply chains.

Another commendable aspect of the Budget is the government’s resolve to reduce the fiscal deficit from 4.8% in 2024-25 to 4.4% in 2025-26. This move is critical as sound public finance management is a sine qua non for sustained economic growth. A lower fiscal deficit will help stabilise inflation, increase investor confidence, and create a more robust macroeconomic environment.

A boost to ease of doing business

Rationalisation of the duty structure and simplification of the tariff framework by removing an additional seven tariff rates is a noteworthy announcement. While this may sound simple, it is a major step towards simplification and enhancing ease of doing business for industry. The rationalisation of cess by ensuring that no more than one cess or surcharge would be levied is a crucial step toward ensuring a fairer and more predictable taxation regime, benefiting both industry and consumers. The Budget has also addressed the issue of inverted duty structure for some products, which is a welcome step. This would enhance trade competitiveness and encourage greater participation of domestic firms in global supply chains.

The continued focus on capital expenditure, manufacturing, and labour-intensive sectors, combined with fiscal prudence and income-tax relief, sets the stage for robust growth in the years ahead.

While the finer details of various schemes and policies will need closer examination, the overarching framework of the Budget suggests a proactive, forward-looking, and growth-oriented strategy. As businesses and stakeholders begin to analyse and adapt to the new measures, the true impact of Budget 2025-26 will unfold in the next few months.

Vijay Sankar is Vice President, The Federation of Indian Chambers of Commerce and Industry (FICCI)



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Union Budget 2025: Tax cut meant to address ‘angst’ and to kickstart a slowing economy, says Finance Secretary https://artifex.news/article69173489-ece/ Sun, 02 Feb 2025 16:34:50 +0000 https://artifex.news/article69173489-ece/ Read More “Union Budget 2025: Tax cut meant to address ‘angst’ and to kickstart a slowing economy, says Finance Secretary” »

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Union Finance Secretary Tuhin Kanta Pandey.
| Photo Credit: The Hindu

The Centre’s decision to significantly slash the income tax payer’s burden was aimed at addressing some “angst” that the government had noticed in recent months as well as to give a fillip to the economy’s weakening growth impulses with a broad-based boost to demand, savings, and investments, Finance Secretary Tuhin Kanta Pandey said on Sunday (February 2, 2025).

While the government will forego ₹1 lakh crore of revenue through the move to make annual incomes up to ₹12 lakh tax-free and rejig the tax slabs and rates across the board, Mr. Pandey told The Hindu that in aggregate terms, this will spur the economy in a manner which “probably can’t even be fathomed”.

Full Budget coverage

“The fact is that there was also angst, which I think the government noticed. The second is also the economic reason [slowdown]. This is a good and a new deal,” the Secretary said.

‘Trust people’s wisdom’

“Normally, we say an investment multiplier is more than the consumption multiplier… But the state of economy that we have today, it requires all kinds of engines to be fired. Therefore, agnostic of that, I think we should really be trusting the people’s wisdom, whatever they want to do. It will come back and the economy will get a boost,” he said, adding that “Lakshmi baantne se badhti hai (distributing wealth also increases wealth)“.

“If the money comes to the government, it will be put in a certain way. If the money goes back to people, the money is distributed in a more equitable way and I’ll explain why. If I give the money to you, you have three choices. You can consume, as per your choice — be it on travel, dining, services, or consumer durables — which will be much more broad-based and not just be in steel and cement,” he pointed out.

Save, spend, invest

If people choose to save instead of consuming, that would also help, as India’s savings rate needs to go up and bank deposits need to grow to support credit flows to critical segments like micro, small and medium enterprises (MSMEs), the Finance Secretary said.

“Third, you may choose to invest directly. Have we forgotten about household investments? Millions of houses are being made or rebuilt by people on their own across small towns. They raise the money, order things on their own, get a contractor to build or rebuild their own houses. That’s how it used to be and still is in many places,” Mr. Pandey underlined.

Asked if there was an assessment of how much this tax stimulus could lift growth, the Secretary said: “What kind of multiplier will operate will depend upon the mix… It could be consumption plus investment in some cases. In either case, in the current situation that we are here, whatever you would do, it helps.” Consumption will spur demand and help private investments, savings will boost bank deposits, and so on, he explained.

“So it is a relief and it is also a policy choice that the government has exercised in order to see that this extra disposable income will come back to the economy and lift the spirits. This would enhance the weakening growth engines of demand and address the slowdown concern too,” the Finance Secretary said.

RBI rate cut possible

Asked whether an interest rate cut by the Reserve Bank of India (RBI), whose Monetary Policy Committee meets this week, will help revive growth further in tandem with the Centre’s stimulus, Mr. Pandey said: “Let’s wait for Friday. They will decide autonomously. I will not hazard any guess on what the RBI will do but its stance has been that inflation is coming down… Now, what is the level they will be comfortable to announce a rate cut, is for them to decide.”

The Budget, he said, is “absolutely non-inflationary”, with the fiscal deficit reined in at 4.4% of GDP. He dismissed suggestions that public capex has not been pushed this time, saying they “reflect inadequate understanding”.

“Our effective capital expenditure is kept at ₹15.48 lakh crore, not just the ₹11.21 lakh crore to be directly spent by the Centre, as government funding will help States’ capex too. On top of that, there is another ₹5 lakh crore from public sector firms, so total capex is about ₹20 lakh crore,” he explained.



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Union Budget 2025: Lok Sabha gets ₹903 crore, Rajya Sabha ₹413 crore https://artifex.news/article69172427-ece/ Sun, 02 Feb 2025 11:33:01 +0000 https://artifex.news/article69172427-ece/ Read More “Union Budget 2025: Lok Sabha gets ₹903 crore, Rajya Sabha ₹413 crore” »

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A view of the Parliament building in New Delhi. File
| Photo Credit: The Hindu

Lok Sabha has been allocated ₹903 crore in the Union Budget, more than double the amount given to the Rajya Sabha.

A sizeable allocation — ₹558.81 crore of the total ₹903 crore — has been assigned to the Lok Sabha Secretariat, which also includes Grants in Aid to the Sansad TV.

Of the ₹413 crore allocated to Rajya Sabha, ₹2.52 crore have been assigned for salaries and allowances of the Chairman and Deputy Chairman in the Rajya Sabha Secretariat.

The Budget for Rajya Sabha also has a separate allocation of ₹3 crore for the salaries and allowances of Leader of the Opposition in Rajya Sabha and his secretariat. The Budget has also allocated ₹98.84 crore for members.

For Lok Sabha, ₹1.56 crore has been allocated for salaries and allowances of the Speaker and Deputy Speaker, and there is no separate provision for the office of the Leader of the Opposition.

There was no Leader of the Opposition in the Lok Sabha for 10 years as no Opposition party had the required numbers to be eligible for the post.

The Lok Sabha Budget allocated ₹338.79 crore for members. Lok Sabha has 543 members, while Rajya Sabha has 245.



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