How will government tackle key issues like weak consumption demand, depreciating currency, low government spendings and tepid private investments through policy intervention in Budget 2025?
The economic scenario does not seem encouraging. A slower economy would weigh on taxes, leaving little space for a spending boost—thereby reinforcing the slowdown
Illustration: Chaitanya Dinesh Surpur
It is likely to be all about setting the right priorities in the first full-year Budget of the coalition government since it assumed power for a third consecutive term in 2024. Striking a balance between growth and fiscal prudence is anticipated to be a steep task this time, considering India is already battling a series of risks threatening to derail economic momentum.
Weak domestic demand, domestic currency depreciation, lower government spendings, tepid private investments and threats of higher tariffs under new US President Donald Trump are some of the major risks that the government needs to address in the upcoming Budget on February 1, through policy intervention, tax reforms and social welfare schemes.