Budget 2025 Expectations: Balancing Welfare Spending And Fiscal Responsibility

As the Union Budget 2025 approaches, Finance Minister Nirmala Sitharaman faces the challenging task of balancing economic growth with fiscal discipline. With just hours until the budget announcement, expectations are high for increased allocations to agriculture and social welfare schemes, especially given the recent economic slowdown. Analysts predict a potential 15% hike in agricultural funding to address declining rural incomes as millions return to farming. The government is also expected to boost capital expenditure significantly, focusing on infrastructure projects that could stimulate job creation and economic activity. This includes proposals for public-private partnerships aimed at enhancing efficiency in infrastructure development. Additionally, changes in income tax slabs may provide relief to middle-income earners, while funding for health and education sectors is anticipated to rise. With a fiscal deficit target of 4.5% for FY26, Sitharaman's budget will need to navigate global uncertainties while ensuring robust support for India's growth trajectory.