Budget 2025-26 Date, Expectations, Constitutional Provisions, Securities Transaction Tax

Discover the Union Budget 2025-26's expectations, including tax reforms, infrastructure development, and industry-specific measures. Learn about its expected date and potential impact on India's economy.

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Union Budget 2025-26 will be presented by Finance Minister Nirmala Sitharaman, and will play a key role in shaping India’s economy for the year ahead. As the new year begins, this budget is expected to focus on important reforms and priorities for the country.

Union Budget 2025-26 is expected to announce significant tax reforms, infrastructure development, and measures to boost economic growth. The budget is also expected to allocate more funds for education and healthcare and announce measures to boost the stock market and encourage investment.

In this article, we will look at the expected date, key highlights, and what to expect from the upcoming Union Budget 2025-26. This Budget 2025 is expected to be a crucial one, given the current economic scenario.

What is the Budget?

A budget is an annual financial document that details estimated income and expenses for a specific period, typically one year. It serves as a framework for managing resources and achieving objectives like resource mobilization and fiscal stability.

In India, the national budget is drafted by the Budget Division of the Department of Economic Affairs (DEA) under the Ministry of Finance. It is then presented to Parliament for review and approval, guiding the country’s financial planning and supporting its economic and social policies.

Constitutional Provisions for Union Budget

In the constitution of India the Budget is not directly mentioned; it is referred to as Annual Financial Statement. Here are constitutional provisions which make the Budget necessary.

Articles	Provisions
Article 112	The President shall, every financial year, cause to lay an annual financial statement before both Houses of Parliament, a statement of the estimated receipts and expenditure of the Government of India for that year.
Article 113	No demand for a grant shall be made except on the recommendation of the President.
Article 114	No amount can be withdrawn from the Consolidated Fund of India(CFI) without authorization from the Parliament.
Article 266	All revenues received by the government shall be credited to the “Consolidated Fund of India”. All other public money, such as provident fund, Postal insurance, etc, shall be credited to the Public Account of India.
Article 267	Parliament may by law establish a Contingency Fund of India to meet unexpected or unforeseen expenditures.

Budget 2025 Date

The Budget 2025 date is expected to be announced soon. Finance Minister Nirmala Sitharaman is expected to table the Union Budget 2025 on February 1, 2025. Finance Minister Nirmala Sitharaman will become the first Finance Minister to deliver eight straight budgets, surpassing Morarji Desai.

Union Budget 2025-26 Expectations

The Union Budget 2025-26 is expected to be a crucial one, given the current economic scenario. Here are some of the key expectations from the upcoming budget:

Tax Reforms: The government is expected to announce significant tax reforms, including a reduction in personal income tax rates and a simplification of the tax structure.

Infrastructure Development: The budget is likely to allocate a substantial amount for infrastructure development, including roads, railways, and airports.

Agricultural Reforms: The government may announce measures to boost agricultural growth, including increased funding for irrigation projects and crop insurance schemes.

Education and Healthcare: The budget is expected to allocate more funds for education and healthcare, including initiatives to improve the quality of education and healthcare services.

Securities Transaction Tax: The government may announce a reduction in the Securities Transaction Tax (STT) to boost the stock market and encourage investment.

Budget 2025 Expectations Industry-wise

Here are some industry-wise expectations from the Budget 2025:

Automobile Industry: The government is expected to announce measures to boost the automobile industry, including a reduction in GST rates and an increase in funding for electric vehicle infrastructure.

Real Estate Industry: The budget may announce measures to boost the real estate industry, including a reduction in GST rates and an increase in funding for affordable housing projects.

IT Industry: The government is expected to announce measures to boost the IT industry, including a reduction in GST rates and an increase in funding for digital infrastructure.

Manufacturing Industry: The budget may announce measures to boost the manufacturing industry, including a reduction in GST rates and an increase in funding for Make in India initiatives.

Securities Transaction Tax

The Securities Transaction Tax (STT) is a tax levied on the purchase and sale of securities, including stocks, bonds, and mutual funds. The government may announce a reduction in the STT rate to boost the stock market and encourage investment.

In the lead-up to Union Budget 2025, the PHD Chamber of Commerce & Industry (PHDCCI) has urged Finance Minister Nirmala Sitharaman to abolish the Securities Transaction Tax (STT). The industry body argues that the recent hike in long-term capital gains tax on listed shares to 12.5% places it on par with other assets, making STT redundant. With STT collections reaching ₹40,114 crore in the current fiscal, the move is seen as a measure to reduce the tax burden on stock market investors and foster economic growth.

Budget 2025 A Look at the Global Scenario

The global economy is facing several challenges, including a slowdown in economic growth, rising trade tensions, and increasing geopolitical uncertainty. The Budget 2025 is expected to take into account these global challenges and announce measures to boost economic growth and stability.