Budget 2025 Expectations: Nomura said on Thursday that the central government may change the income tax slab to encourage consumer spending in the upcoming 2025-26 general budget.
Budget 2025 Expectations: The time for the Union Budget is near. The budget session of Parliament will begin on January 31 and is proposed till April 4. Finance Minister Nirmala Sitharaman will present the general budget on Saturday, February 1, 2025. At the same time, everyone’s expectations about the budget have increased a lot. Meanwhile, global financial services company Nomura said on Thursday that the central government may change the income tax slab to encourage consumer spending in the upcoming 2025-26 general budget.
The financial services firm expects India to exceed its fiscal deficit target for FY25 and the deficit is expected to be 4.8 per cent of GDP, slightly lower than the earlier forecast of 4.9 per cent.
Capex expected to be at 4.4 per cent of GDP
This change is due to a reduction in capex spending. For FY26, Nomura estimates capex to be at 4.4 per cent of GDP, which is in line with India’s medium-term goals. Nomura also expects public capex to grow 12.5 per cent year-on-year in FY26.
Steps expected to be taken to boost capital inflows
Nomura expects an increase in import duty on gold, extension of FDI limit in the insurance sector and steps to boost capital inflows to support the rupee. Apart from this, the firm said that India’s gross market borrowing will increase marginally in FY26 and reach Rs 14.4 lakh crore from Rs 14 lakh crore in the current financial year. At the same time, net market borrowing will fall to Rs 11.03 lakh crore, which is Rs 60,000 crore less than FY25.
Additionally, Nomura believes that the government will adopt a balanced approach in the budget. This will help the Reserve Bank of India to reduce the repo rate in the Monetary Policy Committee (MPC) meeting in February.
Most Read Articles:
- IRCTC Special Train: Good news for passengers! Four AC special trains will run between these two cities, know routes
- India Post Recruitment 2025: Opportunity for 10th pass to get a job in India Post without written exam, salary will be Rs 19900 per month
- Credit Card Link UPI: Link your credit card to UPI from home, know step-by-step guide
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com
