Budget 2025: What to Expect From The Upcoming Budget Session? Here’s What Financial Firm Nomura Says

Budget 2025 Expectations: The General Budget 2025 is around the corner, with the budget session of Parliament beginning on January 31. Finance Minister Nirmala Sitharaman will announce the national budget on February 1, 2025. As anticipation grows, major financial institution Nomura has provided insight into what to expect. Key areas of focus include prospective increases in income tax rates to boost consumer spending and help the middle class. Furthermore, Nomura expects the fiscal deficit to fall slightly to 4.8% in 2025, owing to lower capital investment in infrastructure projects. Capital expenditure is forecast to continue at 4.4% of GDP until 2026, but to increase annually by 12.5%.

What to Expect From Budget 2025?

Other important expectations include the possibility of increasing import levies on gold and hiking the FDI limit in the insurance sector to encourage foreign investment. Measures to boost the rupee through capital inflows are also expected. According to Nomura, India’s gross market borrowing is likely to increase to Rs 14.4 lakh crore in 2026, up from Rs 14 lakh crore in 2025, but net market borrowing may fall by Rs 60,000 crore to Rs 11.3 lakh crore. The government is expected to take a balanced approach to the budget, which could help the Reserve Bank of India reduce the repo rate during the Monetary Policy Committee meeting in February.