Budget 2025: Parliament Session For Union Budget FY26 Will Start On January 31 And End On April 4; Details

The dates of Budget sessions that will commence in Parliament has been announced. The Parliamentary session will commence on January 31, 2025, and will end on April 4. The main Budget FY26 announcement will take place on February 1st.

The Budget session will take place in two parts. The first session will start on January 31 and will end on February 13, 2025. The second session will begin on March 10th and end on April 4.

President Droupadi Murmu will address a joint session of Parliament in the Lok Sabha Chamber on January 31, 2025, at around 11:00 AM in New Delhi.

Following this, Finance Minister Nirmala Sitharaman will present her eighth Budget as FM in the country, on February 1st. So far, she has presented six annual budgets and two interim budgets, surpassing the record of former PM Morarji Desai for presenting the most Budgets in India.

What To Expect In Union Budget 2025?

Indranil Pan, Chief Economist, YES BANK 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.

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 added, "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."

Meanwhile, ICRA in its note said, FY2026 fiscal deficit target seen at 4.5% of GDP: Amidst the backdrop of slowdown in domestic urban demand and investment activity, the FY2026 Union Budget should aim to build in adequate growth for capital expenditure, reinforce focus on employment and skilling, and boost manufacturing capacity, while also adhering to fiscal consolidation. ICRA estimates a fiscal deficit target of 4.5% of GDP for FY2026, vs. 4.8% expected for FY2025 (RBE: 4.9% of GDP), with a capital expenditure growth of 12-13% amounting to Rs. 11 trillion.

What is the Union Budget?

The Union Budget is a financial statement released by the Indian government that accounts for its expenses in one fiscal year. A Union Budget is essentially a group of documents that, when combined, give you a complete understanding of the government's finances. This financial document also helps us get a clear understanding of the various taxes that are levied by the government. You can find all the budget documents on the official website of the Ministry of Finance, as per HDFC Bank's website.

Here are key concepts of the Budget, as per Kotak Securities website:

1. Fiscal Deficit: This is the shortfall between the government's income and expenditure.

2. Direct Taxes: These are the taxes imposed directly on citizens, such as income tax and corporate tax.

3. Indirect Taxes: These are the taxes imposed on suppliers or manufacturers that are passed on to consumers, such as the Goods and Services Tax (GST).

4. Non-Plan Expenditure: Includes expenditure on interest payments, defense, subsidies, police, pensions, and other services.

5. Plan Expenditure: These are the expenditures on the Central Plan and Central Assistance to states and union territories.