New Delhi, Jan 31: As Finance Minister Nirmala Sitharaman gears up to present the Union Budget for 2025-26 in Parliament on February 1, the recently unveiled Economic Survey sets a clear agenda for fostering economic growth with a focus on equity. Emphasizing rural development, the survey for 2024-25 highlights improved living standards in rural areas as a priority. It underscores financial inclusion, aiming to provide rural households and small businesses with better access to credit via microfinance, self-help groups, and intermediaries.
Significant initiatives are anticipated in infrastructure, rural housing, sanitation, clean energy, social protection, and connectivity, with agriculture and rural sectors likely to see increased budget allocations. Welfare schemes targeting poverty alleviation are also expected to receive a boost. Continuation of large-scale investments in infrastructure to drive economic growth and job creation is expected to remain a cornerstone of the budget strategy.
The Economic Survey stresses the necessity for substantial infrastructure investment over the next decade to meet India’s development targets. Capital spending by the central government in key infrastructure sectors has reportedly grown at an average rate of 38.8% from FY20 to FY24. Tax concessions for the middle class, including potential reductions in income tax rates and a hike in standard deductions, are on the horizon. This move is anticipated to increase disposable incomes, thereby enhancing demand and stimulating growth.
Modifications in customs duties to address the inverted duty structure and support domestic manufacturing might also be proposed. By raising tariffs on finished goods and reducing duties on inputs, domestic production could receive a significant boost.
Chief Economic Advisor V. Anantha Nageswaran noted that India must now rely on domestic growth drivers as global trade dynamics shift. Finance Minister Sitharaman’s budget speech is scheduled for 11 a.m. on Saturday. The Budget Session of Parliament, which began on January 31, will proceed in two phases, concluding on April 4.
Original Source: https://theshillongtimes.com/2025/01/31/stage-set-for-fm-sitharaman-to-present-budget-2025-26-tomorrow/
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Publish Date: 2025-01-31 20:53:00
