Union Budget 2025 - Live Updates & News

ICRA Suggests Rs 11 Lakh Crore Capex Target and Tax Relief in Budget 2025  

Rating agency ICRA has recommended setting a capital expenditure target of ₹11 lakh crore for the next fiscal in the Union Budget 2025, along with inflation-adjusted tax relief to boost consumer spending. ICRA Chief Economist Aditi Nayar noted that the current fiscal's capex target of ₹11.11 lakh crore may fall short by ₹1.4 lakh crore. Nayar highlighted that capex spending between April and November 2024 was ₹5.13 lakh crore, only 46% of the budget estimate, stressing the need for focused fiscal management.

Income Tax Act Revamp: Over 6,500 Suggestions Received for Simplification

According to a report by Business Standard, the Income Tax Department has received more than 6,500 suggestions from stakeholders to simplify the Income Tax Act. Led by a committee under the Central Board of Direct Taxes (CBDT), the initiative aims to remove outdated provisions, reduce compliance burdens, and streamline the law by trimming its 298 sections and 23 chapters. For this, 22 specialized sub-committees have been formed that are actively collaborating with experts through meetings to recommend improvements.

MSMEs Seek Tax Reforms, Export Incentives, and Demand Boost in Budget 2025-26

Ravi Saxena, Founder and MD of Wonderchef, outlined key expectations of MSMEs for the Union Budget 2025-26, including tax reforms, compliance relief, and enhanced export incentives. He stressed the importance of ensuring better access to critical inputs like steel, aluminum, and plastics while calling for faster dispute resolution to ease operational challenges. He also emphasized that boosting consumer confidence and spending is essential for balanced GDP growth. Such measures, he added, would drive demand, create jobs, and support sustainable economic progress through public and private sector collaboration.
 

Government May Reintroduce Concessional Corporate Tax in Budget 2025-26

The government is reportedly considering reintroducing the concessional corporate tax rate in the Union Budget 2025-26, according to CNBC-TV18. Anonymous sources indicate that the Finance Ministry and PMO are evaluating a proposal shared by India Inc. However, the revised scheme might set the tax rate at 18% plus cess and surcharges, higher than the earlier 15%. Introduced in 2019, the concessional tax rate initially applied to new domestic companies commencing production by March 31, 2023, offering a competitive tax environment for businesses.  

Indian Railways May See Capital Allocation Surge in Budget 2025-26  

Indian Railways is likely to receive a 15-20% increase in capital expenditure allocation for FY26 in the upcoming Budget, as it looks to utilize the current year’s funds fully. This could boost the total allocation to over ₹3 lakh crore, compared to ₹2.65 lakh crore in the current fiscal. Key priorities for the next fiscal may include upgrading railway stations, introducing modern trains, and easing congestion on the track network, according to sources familiar with the ongoing discussions.

Will Budget 2025 Bring GST Relief and Policy Boost for the Cement Industry?

The cement industry seeks measures to foster growth and address key challenges in Budget 2025. Arun Shukla, President & Director of JK Lakshmi Cement Ltd, urged the government to expedite project approvals, release funds efficiently, and lower GST on cement from 28% to 18% to make housing affordable and boost the 'Housing for All' initiative. He emphasized the need for incentives for green manufacturing, logistics optimization, and innovations in sustainable technology to strengthen the sector's role in infrastructure development and India's $5 trillion economy vision.

Insurance Industry Seeks Tax Benefits and Support in Budget 2025

Top insurance officials have urged Finance Minister Nirmala Sitharaman to prioritize the life and health insurance sectors in the upcoming Union Budget on February 1. Key demands include increasing the Section 80D deduction limit for health insurance premiums and introducing a separate tax benefit for term insurance premiums. With healthcare inflation rising by 12-15% annually, the industry emphasizes the need for higher deductions to make health insurance accessible.

Finance Ministry to Review Progress of Key Financial Inclusion Schemes

Financial Services Secretary M. Nagaraju will chair a meeting with the heads of Public Sector Banks (PSBs) on Wednesday to evaluate the progress of major financial inclusion initiatives. The review will focus on schemes such as Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), and Pradhan Mantri Suraksha Bima Yojana (PMSBY). Representatives from private sector banks will also attend. The meeting aims to assess the impact and implementation of these programs.

NRAI Calls for Industry Status and Supportive Policies for Food Services Sector

The National Restaurant Association of India (NRAI) has urged the government to grant industry status to the food services sector and implement fair e-commerce policies to ensure a level playing field. In its pre-Budget recommendations, the NRAI proposed measures such as allowing extended operating hours for restaurants, offering targeted subsidies, and improving debt financing access for SMEs. It emphasized the need to safeguard restaurants, delivery partners, and consumers while highlighting the sector’s vital role in the economy amidst ongoing challenges.

CII Suggests Key Measures for Growth Ahead of Union Budget 2025

The Confederation of Indian Industry (CII) has proposed a range of measures ahead of the Union Budget 2025, including a reduction in benchmark interest rates to spur growth and targeted efforts to boost employment in labour-intensive sectors like apparel, tourism, and real estate. CII President Sanjiv Puri highlighted the need for labour reforms, swift anti-dumping duties on imports like steel and chemicals, and measures to tackle food inflation. Other suggestions include cutting excise duty on fuel and introducing PLI 2.0 for the garment sector.

NAREDCO Proposes Tax Deduction on Housing Loan Interest

The National Real Estate Development Council (NAREDCO) has urged the government to increase the tax deduction on housing loan interest from ₹2 lakh to ₹5 lakh and grant infrastructure status to the housing sector in the upcoming Budget 2025. Following a pre-budget meeting with Finance Minister Nirmala Sitharaman, NAREDCO Chairman Niranjan Hiranandani highlighted the need to boost affordable housing finance. Additional recommendations focused on driving growth in energy, urban development, and road infrastructure to strengthen the economy. 
 

Finance Minister Concludes Comprehensive Consultations for Budget 2025

Finance Minister Nirmala Sitharaman has wrapped up extensive consultations for the Union Budget 2025, the Finance Ministry announced. These discussions, held from December 6, 2024, involved over 100 participants from nine key stakeholder groups. Representatives included experts from agriculture, trade unions, MSMEs, education, health, infrastructure, and capital markets. The meetings aimed to gather insights from diverse sectors, such as farmers' associations, economists, and industry leaders, to shape the upcoming budget. Additionally, from January 10, 2025, citizens may share their valuable suggestions and ideas for the Union Budget 2025-26 on the MyGov platform.

Tax Relief on FDs and Capital Market Reforms?

As speculation grows around Union Budget 2025, reports suggest potential tax relief on interest earned from bank Fixed Deposits (FDs), which are currently taxed as per individual income tax slabs. Banks have reportedly urged the government to exempt FD interest from income tax, a move that could significantly benefit savers. Meanwhile, Radhika Gupta, MD and CEO of Edelweiss Mutual Fund, has proposed measures to enhance capital market inclusivity and efficiency, advocating for policies that encourage long-term savings in bonds and equity during pre-budget discussions.
 

Union Budget 2025 to be presented on 1st February, 2025.

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