FM Sitharaman's record 7th Union Budget presentation: All you need to know

Finance Minister Nirmala Sitharaman is set to make history with her seventh consecutive Union Budget presentation today, laying out Modi 3.0's fiscal plan for the India Budget for FY25

India Budget 2024: On Tuesday (July 23), Union Finance Minister Nirmala Sitharaman is set to present the FY25 Union Budget, marking her seventh consecutive Budget presentation. This achievement will make her the first Finance Minister to present the Budget seven times in a row.

Historically, Morarji Desai presented the Union Budget six times consecutively, while former Prime Minister Manmohan Singh delivered five consecutive Budgets from 1991 to 1995. Desai holds the record for the most Budget presentations, with a total of ten, followed by P Chidambaram, who presented nine Budgets. Pranab Mukherjee also presented the Budget five times in a row, contributing to his total of eight presentations.

 

The monsoon session of parliament began on July 22 with the presentation of the Economic Survey for 2023-24. The business advisory committee of the Lok Sabha has allocated time to discuss issues related to the ministries of railways, education, health, micro, small and medium enterprises (MSME), and food processing, alongside the Union Budget. A total of 20 hours has been designated for the Budget debate.

What are the expectations from Budget 2024?

Expectations are high for the upcoming Budget, which is expected to introduce changes to the income tax structure and implement measures to enhance the ease of doing business in India. Key announcements and the government's strategic economic guidance will be closely monitored.

While some tax relief measures aimed at increasing middle-class consumption are expected, economists have taken a rather conservative view that the Budget will strike a balance between populist initiatives and a robust economic growth strategy. Finance Minister Sitharaman is expected to prioritise income tax relief, infrastructure development, job creation, and boosting farmers' income. Despite potential populist measures, fiscal discipline is likely to remain a priority, significantly impacting the economy and citizens' lives, Business Standard reported earlier.

Meanwhile, stock market investors are hopeful for incremental changes to the capital gains tax, with potential simplifications to the complex tax structure. Although major rate changes are not expected, rationalisation measures could enhance investor confidence. Standardising holding periods and capping capital gains tax rates may be considered to ensure stability and attract investments.

What were the key findings of the FY24 Economic Survey?

Sitharaman presented the Economic Survey for 2023-24 in Parliament on Monday, highlighting the resilience and stability of the Indian economy amid geopolitical challenges. The report described the economy as being on a "strong wicket and stable footing," with consolidated post-Covid-19 recovery and robust fiscal and monetary policies ensuring stability.

Sitharaman noted an estimated 8.2 per cent growth for FY24, with the economy surpassing the eight per cent mark in three of four quarters. She projected that the momentum from FY23 and FY24 would continue into FY25, with growth expected between 6.5 and 7 per cent.

What are the pre-Budget rituals?

Before presenting the Budget, the Finance Minister will meet with secretaries at the Ministry of Finance headquarters in North Block, followed by a visit to the President’s residence to seek permission to present the Budget. A Cabinet meeting, led by the Prime Minister, will also take place to brief ministers and secure approval.

What is the process of making a Budget?

The Budget preparation process begins in September-October with the Ministry of Finance issuing circulars to all ministries, Union territories, states, and autonomous entities, requesting their demands and recommendations. Typically, the Budget is presented on February 1. But during General Election years, an interim Budget is presented earlier, followed by a full Budget after the new government takes charge.

The revered ‘Halwa’ ceremony

In the days leading up to the Budget presentation, the government conducts the traditional 'halwa ceremony,' which marks the commencement of Budget document printing. This year, the ceremony took place on July 16 in the basement of North Block. This ceremony also signifies the beginning of a lockdown at the Finance Ministry, ensuring confidentiality until the Budget is officially presented. It is attended by the Finance Minister and other high-ranking officials.

The basement of North Block houses a printing press that was traditionally used to print Budget documents for 40 years from 1980 to 2020, before the Budget went digital and the bulk distribution started happening via mobile app or on the website. Going digital also meant that the lock-in period has become shorter to just five days from the previous one which lasted up to two weeks.