Union Budget 2025  – Union Budget 2025-26, Expectations and Constituents?

What is the Union Budget?

Just like companies present their annual reports at the end of every financial year, the Indian government is also liable to present an annual financial statement of their estimated receipts and expenditures for the upcoming fiscal year, which is called the Union Budget. 

Basically, the Union budget represents the accounts of all the receipts and expenditures the government expects to undertake in the coming year along, with a detailed summary of the income and expenses that occurred in the previous year. The Union budget is presented in the Parliament House of India in the presence of the speaker of the house and its members. 

Latest Update on Union Budget 2025 

The central government of India is prepared to present the Union budget for 2025. However, the date is yet to be confirmed, but as per the past trend, the budget is supposed to be presented on 1st February 2025.  Smt. Nirmala Sitharaman, the current union finance minister of the ongoing BJP government, will present the Union budget to the House speaker and members of parliament under her 8th budget presentation. 

The Union Budget 2025 is prepared by the Ministry of Finance in consultation with the NITI Ayog and other stakeholders. Union Minister of Finance and Corporate Affairs, Smt. Nirmala Sitharaman held a pre-budget meeting with trade unions on 6th January to discuss their inputs and expectations from the upcoming Union budget 2025-26. Before this, another pre-budget meeting was conducted to consult with the representatives of capital and financial markets on 2nd January 2025. 

Expectations From the Union Budget 2025

Industry leaders, trade unions and the general public have provided inputs and expectations for the upcoming Union budget 2025. The primary area of focus for this year’s budget is inclined towards the declining value of rupees against the dollar, reduced consumer demand, GST rationalisation and some relief in the income tax of individuals. Stakeholders are expecting the central government to present a budget that includes estimates that can push the domestic demand and strengthen the Indian economy on the global stage, simultaneously addressing the GST and income tax issues. 

What are the Components of the Union Budget 2025?

The Union Budget 2025, like the budget of every previous year, consists of two heads: Capital Budget and Revenue Budget. Now let us understand both these terms in detail:

Capital Budget – The Capital Budget is the head that keeps track of all the capital receipts and expenditures of the government in a year. Here, the capital receipts account for the capital income generated through loans from the public or Reserve Bank of India (RBI). On the other hand, capital expenditures are the payments undertaken to develop and maintain infrastructure and provide other facilities of a capital nature. 

Revenue Budget – The revenue budget comprises of two components: Revenue receipts and payments. Revenue expenditures are the payments that account for the government’s recurring expenses in a year. Revenue receipts are the income generated through tax and non-tax revenue throughout the year. 

Fiscal Deficit or surplus – Fiscal deficit or surplus occurs due to a difference in the total expenditure and receipts of the government in a fiscal year. When the total expenditure surpasses the revenue, a fiscal deficit occurs, whereas, in case if the total revenue surpasses the expenditure, a fiscal surplus occurs.

Union Budget 2025-26 and Stock Market 

On 1st February 2025, when India will be witnessing the presentation of the full annual budget for Fiscal Year 2025-26, traders and investors will be making their moves in the stock market. Even after being a market holiday on 1st February 2025, i.e. Saturday, the stock exchanges have allowed live trading on the budget day.  

The Union Budget 2025 will be an important event for stock market participants, and the opening of markets on the day will be an interesting opportunity for them to track and ride the price trends in sync with the budget announcements. 

Key Takeaways On Union Budget 2025-26

• Union budget 2025-26 will be presented on 1st February 2025 by the Union Minister of Finance and Corporate Affairs, Smt. Nirmala Sitharaman.  
• The Union budget will include accounts of the estimated receipts and expenditures of the central government in the upcoming fiscal year.
• The Union budget is distributed under two primary heads: the capital and revenue budgets. 
• Stock exchanges will allow live trading on the stock market on the budget day. 
• Stakeholders are expecting the government to issue major economic issues through the Union Budget 2025-26. 

Frequently Asked Questions

1. When will the Union budget 2025 -26 be presented?

The Union Budget for the Fiscal Year 2025-26 will be presented on 1st February 2025.

2. What is the Union budget?

The union budget is a summary of the estimated expenses and receipts for an upcoming financial year. Along with budgetary estimates, it also includes the income generated and expenses by the government in the past year. 

3. Who will present the Union Budget 2025 – 26?

Union Finance Minister Smt. Nirmala Sitharaman will be presenting the Union Budget 2025 on 1st February 2025. 

4. What is the difference between Union Budget and Interim Budget?

The difference between the Interim and the Union Budget is the time period for which they are prepared. The current government presents the interim budget in between a financial year to represent the mid-year performance data of the government.

The Union budget, on the other hand, is a full-fledged account of the government’s previous year’s spending and income, along with the estimated budget for the upcoming year.

5. Will the stock market be open on budget presentation day?

Yes, the stock market will be open for trading on the budget day.