New Delhi [India], January 30 (ANI): The wait for the Budget 2025 is over as the Narendra Modi-led NDA government is set to table the Economic Survey in the Parliament on Friday afternoon.
As is the convention, Finance Minister Nirmala Sitharaman will table the pre-budget detailed state of the economy document in the Parliament, a day ahead of the Budget presentation for the next financial year – 2025-26.
Economic Survey will be tabled in Lok Sabha at 12 noon and at 2 PM in Rajya Sabha.
What is an Economic Survey:
The Economic Survey document, prepared by the Economic Division of the Department of Economic Affairs in the Ministry of Finance and formulated under the supervision of the chief economic adviser, gives insights into the state of the economy and various indicators of 2024-25 (April-March) and some outlook for the next fiscal.
The Economy Survey document may also give some idea about the tone and texture of the actual Budget for 2025-26, to be presented on Saturday.
The first economic survey reportedly came into existence in 1950-51, when it used to be a part of the budget documents. In the 1960s, it was separated from the Budget documents and presented the day before the Union Budget.
The most important feature that many will look out for is its central theme.
In 2022, the central theme was ‘Agile Approach’, which emphasized India’s economic response to the COVID-19 pandemic shock. In 2023, it was ‘recovery complete’, when the economy staged a broad-based recovery from pandemic-induced contraction, Russian-Ukraine conflict, and inflation, and ascended to the pre-pandemic growth path. In 2024, it focussed on economic resilience.
Typically, along with the sectoral chapters, the Survey document also adds new need-based chapters that call for special focus.
All eyes will be on the key announcements and the government’s forward-looking economic guidance for the remainder of the Modi 3.0 tenure. This upcoming budget comes in the backdrop of weak GDP numbers and weak consumption in the economy.
With this upcoming Budget Presentation, Sitharaman will have presented seventh budget. She has already surpassed the record set by former Prime Minister Morarji Desai, who presented five annual budgets and one interim budget between 1959 and 1964 as finance minister.
Like the previous few full Union Budgets, the Budget 2025 will also be delivered in paperless form.
State of the economy:
The Indian economy grew by 5.4 per cent in real terms in the July-September quarter of the current financial year 2024-25. The quarterly growth was quite lower than RBI’s forecast of 7 per cent. In the April-June quarter too, India’s GDP grew at a slower pace than was estimated by its central bank.
The Reserve Bank in its latest monetary policy had cut India’s growth forecast for 2024-25 to 6.6 per cent from 7.2 per cent. The government expects 6.4 per cent growth.
India’s GDP grew by an impressive 8.2 per cent during the financial year 2023-24, and continued to be the fastest-growing major economy. The economy grew by 7.2 per cent in 2022-23 and 8.7 per cent in 2021-22.
The Economic Survey tabled in July 2024 “conservatively” projected India’s real GDP growth at 6.5-7 per cent for 2024-25, acknowledging that market expectations were higher. Real GDP growth is the reported economic growth adjusted for inflation.
Customary halwa ceremony:
A key event before the budget presentation is the ‘halwa ceremony’. A few days before the budget is presented, the government has a tradition of conducting a ‘halwa ceremony’, marking the start of budget document printing. This year it happed on January 24.
As is the convention, the ceremony was led by Finance Minister Nirmala Sitharaman, with Minister of State Pankaj Chaudhary, and secretaries, in attendance. Officers and staff involved in the budget preparation and compilation process were also be present on the occasion.
The halwa ceremony is a significant event as it also marks the beginning of lockdown at the finance ministry. This means no official is allowed to leave the ministry compound. Everyone part of the Budget team is allowed to leave only after the financial document is presented in Parliament. The printing of the Union Budget inside the basement located at the North Block has become a permanent feature since 1980.
Budget session 2025:
The budget session of parliament will begin on January 31 and, according to schedule, will end on April 4.
The budget will be presented on February 1. On budget day, the Finance Minister will present the Union Budget in the Lok Sabha at 11 am. The budget speech will outline the government’s fiscal policies, revenue and expenditure proposals, taxation reforms, and other significant announcements.
A day prior, President Droupadi Murmu will address the joint sitting of two houses of Parliament on January 31. Parliament will have an inter-session break from February 14 and the two Houses of Parliament will resume their sittings on March 10.
The budget, once tabled on February 1, is then subjected to detailed debate and discussion in both houses of Parliament, allowing members to scrutinise its provisions, raise concerns, and propose amendments. Following its presentation and approval by Parliament, the Union Budget sets in motion a series of post-budget activities aimed at implementing its provisions and achieving the outlined objectives.
On the morning of budget day, the finance minister will go to the North Block, where the Ministry of Finance is housed. She will meet the secretaries of her ministry, and later, along with them, she will reach the President’s residence to get permission before presenting the Budget. Half an hour before the budget is presented, a Cabinet meeting headed by the Prime Minister is usually held, where ministers are briefed about the budget and Cabinet approval is taken. (ANI)
