Finance Minister Nirmala Sitharaman will present her eighth consecutive Union Budget on Saturday. Consequently, the salaried class is hoping for relief in income tax rates and slabs to ease the burden of rising inflation.

Final Preparations

Before the presentation, Sitharaman finalized the Budget document on Friday. The finance ministry shared an update on X, stating, "Union Minister for Finance and Corporate Affairs Smt. @nsitharaman interacts with the Secretaries and senior officials involved in the Budget-making process @FinMinIndia while giving final touches to the Union Budget 2025-26 at her office in North Block, New Delhi."

Growth Projections

The Economic Survey projects India’s GDP growth for FY 2025-26 at 6.3% to 6.8%. However, it also highlights that India's growth is slowing. Therefore, more work is needed to reach the 8% annual growth target for Viksit Bharat by 2047.

Middle-Class Hopes

Following Prime Minister Modi's invocation of Goddess Lakshmi for the blessing of the poor and middle class, expectations are high. As he prayed, "I pray to Goddess Lakshmi that the poor and the middle-class sections in the country are blessed by her."

Geopolitical and Economic Challenges

The budget comes amid both geopolitical uncertainties and a four-year low in economic growth. Moreover, with new US President Donald Trump threatening tariffs against countries like India, the situation remains tense.

Expectations from Experts

Analysts are anticipating tax rationalization, an export boost, better capital spending plans, and clear structural reforms from the budget. These measures are expected to support continued growth.

Focus on Growth

DK Srivastava from EY India emphasized, "The upcoming budget must balance fiscal prudence with growth-oriented measures." He added that increasing capital expenditure and giving consumers more disposable income, especially urban consumers, will stimulate domestic demand.

Karnataka’s Demands

Karnataka Chief Minister Siddaramaiah urged the Centre to address resource allocation more fairly. He criticized the government's "discriminatory approach" and called for equity in financial challenges and tax devolution.

Concerns for NRIs

In addition, Congress leader K.C. Venugopal raised concerns about recent changes in capital gains taxation for NRIs. He urged Sitharaman to extend the same tax benefits to NRIs as those given to other citizens.

Rahul Gandhi’s Criticism

Rahul Gandhi also criticized the lack of representation of Dalits, tribals, backward classes, and minorities in the budget-making process. He stated, "You will not see a single Dalit, a tribal, a backward class person, or a minority in the photo."

Congress Meeting

Meanwhile, Congress met at Sonia Gandhi’s residence to discuss critical issues, such as inflation, unemployment, the Mahakumbh stampede, and the alleged insult to B.R. Ambedkar.

Himachal Pradesh’s Request

Lastly, Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu called for the central government to fully fund an international-standard airport for the state. With these considerations in mind, the budget presentation will address crucial fiscal policies that will shape the economy in the upcoming year.