On February 1, 2025, Union Finance Minister Nirmala Sitharaman will present the full budget for the 2025-26 fiscal year. The preparations are in full swing, with only a little time left until February 1. People across the country are eagerly awaiting the day when the Finance Minister will make announcements in Parliament that will help them plan their own budgets. Whether it’s the healthcare and pharma sectors, the real estate industry, or employees in government or private offices, everyone has certain expectations from the budget, and this year is no different.
What does the real estate sector expect from the budget?
Let’s first look at the real estate sector. People involved in real estate are hoping that this year’s budget will address issues related to financing, taxation, and infrastructure. There is an expectation that the government will introduce measures that will benefit middle-class homebuyers and the industry as a whole. The sector believes that specific announcements in the budget could positively impact both homebuyers and the real estate industry.
Edible oil industry’s demand:
The Solvent Extractors Association of India (SEA), representing the edible oil industry, has submitted a pre-budget memorandum to the Finance Minister. In this memorandum, they stressed the need to promote oilseed production and reduce dependency on imports. They called for an increase in financial support and the establishment of a “National Mission on Edible Oils.”
Expectations from the pharma sector in Budget 2025:
The pharma sector has high expectations from Budget 2025. It is anticipated that the Indian pharmaceutical industry could reach $130 billion by 2030 and $450 billion by 2047. Experts suggest that the government should consider eliminating GST and import duties on life-saving drugs, as well as increase investment in research and development (R&D). Additionally, encouraging domestic API manufacturers and expanding the PLI schemes could further strengthen the sector.
Tax relief for income earners up to ₹20 lakh:
As with every year, different sectors have their expectations. In the meantime, media reports suggest that the government may provide tax relief for individuals earning up to ₹20 lakh. Two options are being considered: the first is to make incomes up to ₹10 lakh tax-free, and the second is to create a new 25% tax slab for those earning between ₹15 lakh and ₹20 lakh. However, this relief is likely to apply only to those under the new tax regime.
Currently, salaried individuals do not pay tax on income up to ₹7.75 lakh with the standard deduction of ₹75,000. On the other hand, individuals earning above ₹15 lakh fall under the 30% tax slab. Sources indicate that if these options are implemented, the central government could lose approximately ₹50,000 to ₹1 lakh crore in revenue.
Budget of Modi government’s third term (first budget of 2024-25):
Earlier, the first budget of the Modi government’s third term was presented on July 23, 2024. This budget focused on increasing farmers’ incomes and allocated ₹1.52 lakh crore for the agriculture sector. However, no announcements were made regarding an increase in the Prime Minister Kisan Samman Nidhi or MSP. The budget also included special allocations for Andhra Pradesh and Bihar, with ₹15,000 crore for Andhra Pradesh and ₹60,000 crore for Bihar.
The ‘Purvoday’ scheme:
The Finance Minister also introduced a new initiative named the ‘Purvoday’ scheme, which aims to develop the eastern region of the country, including Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh. Additionally, states affected by floods, such as Assam, Himachal Pradesh, Uttarakhand, and Sikkim, were mentioned, with the central government pledging support to compensate for flood damages.
Jammu and Kashmir’s budget allocation:
Jammu and Kashmir received a budget allocation of ₹42,277.77 crore, which was 1.2% higher than the previous year. Furthermore, the central government allocated ₹9,789.42 crore for the Jammu and Kashmir police.
Shashi Rai
