Finance

On February 1, 2025, Finance Minister Nirmala Sitharaman made history by presenting her eighth consecutive Union Budget, a record-breaking feat in India’s fiscal history. This achievement brings her closer to the 10 budgets presented by former Prime Minister Morarji Desai, who holds the record for the most total budgets. Sitharaman’s tenure has been marked by her break from colonial-era practices, including her choice of a digital tablet to present the Budget. As India navigates a slowing economy and rising demands for tax cuts, Sitharaman’s approach to fiscal policy continues to shape the nation’s economic direction.

The Economic Survey 2024-25 reveals that while India’s overall inflation eased from 5.4% in FY24 to 4.9% in FY25, food inflation remains a significant concern. Food inflation rose from 7.5% in FY24 to 8.4% in FY25, driven primarily by higher prices of vegetables and pulses. These price hikes were largely attributed to supply chain disruptions and unpredictable weather patterns. Despite a global downward trend in food prices, emerging economies like India continue to face elevated food inflation. The survey anticipates a slight easing of food inflation in the January-March quarter, but risks such as global commodity price increases and adverse weather events remain.

As Finance Minister Nirmala Sitharaman prepares to present the Union Budget 2025, the defence sector anticipates key measures to strengthen India's strategic capabilities and support self-reliance. Building on last year’s increased allocation of Rs 6.22 lakh crore, experts are hopeful for a continued focus on domestic production, R&D funding, and incentives for the private sector. Sahil Luthra, Managing Director of Vijayan Trishul Defence Solutions, emphasized that such investments are crucial not only for national security but also for boosting economic growth through innovation, exports, and job creation. With a stable economic outlook, the sector is optimistic that the Budget will prioritize innovation and further the vision of 'Atmanirbhar Bharat'.

Congress General Secretary Jairam Ramesh criticized the Narendra Modi government over the complexity of the GST system, particularly the "absurdity" of having three different tax slabs for popcorn. He called for a complete overhaul of the system, highlighting how its growing intricacies were facilitating tax evasion, input tax credit fraud, and the establishment of bogus companies. Ramesh also pointed to the recent revelation by the Directorate General of GST Intelligence, which reported a staggering ₹2.01 lakh crore in GST evasion for FY24. As the Union Budget approaches, Ramesh urged the Prime Minister and Finance Minister to launch a GST 2.0 to address these issues.

The State Bank of India (SBI) has issued an advisory warning the public about common cybercrime scams, urging caution amidst the rising number of frauds. The advisory highlights 10 popular scams, including fake TRAI calls, parcel customs fees, and digital arrest threats. It also warns about scams involving easy money offers, lottery wins, and KYC updates. SBI stresses the importance of verifying any suspicious communication, especially when financial or personal details are requested. The advisory aims to help individuals recognize fraud attempts and protect themselves from falling victim to cybercriminals.