Union Budget 2025 | Focus should be on driving growth -- short, and long-term: YES Bank Chief Economist

'The Central government is likely to maintain its emphasis on capital expenditure,' Mr Indranil Pan opined

The Union Budget for the upcoming financial year is all set to be presented on February 1, 2025, by Finance Minister Nirmala Sitharaman. According to reports, the Narendra Modi government may consider slashing income tax for individuals earning up to Rs 15 lakhs per annum and extend the tax relief bracket in a bid to provide relief to the middle class and boost consumption.

Speaking about the upcoming budget, YES Bank Chief Economist Mr Indranil Pan said "Managing fiscal numbers doesn't seem to be a major challenge this year. Our analysis suggests that another strong RBI dividend could support the government's fiscal consolidation plans. This Budget should focus on driving growth—both in the short term and through long-term structural changes."

He opined, "The Central government is likely to maintain its emphasis on capital expenditure, given the slow pace of private investment. Urban consumption demand appears to be softening, and while rural demand shows some promise, we don't expect significant government measures to boost overall consumption, apart from some relief for lower-income groups."

Pan continued, "Efforts should be directed toward improving employment generation schemes and scaling up the internship program announced last year. Additionally, the agricultural sector needs attention, especially in strengthening the value chain from farm to table and improving productivity—critical in the face of climate change.”

Union Budget 2025 | Nirmala Sitharaman, who continues to be Finance Minister, will present her record 8th Union Budget this time. While inflation has burnt a hole in the pockets of 'aam janata', reports suggest there might be a tax relief for those making up to Rs 15 lakh per year. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.