Union Finance Minister Nirmala Sitharaman is set to hold a pre-budget meeting with key industry leaders on June 20 from 4 to 6 PM at North Block. This gathering is a significant step in the pre-budget process, designed to gather crucial insights and suggestions from industry stakeholders for the 2024-25 Union Budget. Participants will include major industry groups such as the Federation of Indian Chambers of Commerce & Industry (FICCI), Confederation of Indian Industry (CII), Associated Chambers of Commerce and Industry of India (Assocham), and the PHD Chamber of Commerce and Industry.
The meeting highlights the government’s dedication to incorporating diverse viewpoints from economic stakeholders in the budget formulation. Attendees will discuss various economic policies, including tax reforms, growth incentives for industries, support systems for small and medium enterprises (SMEs), and broader strategies to foster economic growth.
The series of pre-budget meetings began on June 18, with industry associations having preliminary discussions with Revenue Secretary Sanjay Malhotra. These initial talks set the groundwork for a detailed engagement with the Finance Minister. Key topics expected to be addressed include tax system simplification, improvements in business operations, and incentives for sectors like manufacturing and services.
This year’s budget is particularly significant as it marks the first full budget of the Modi government’s third term, following an interim budget presented on February 1. Nirmala Sitharaman, having presented six consecutive budgets, is poised to set a record with the presentation of the first comprehensive budget for the new term of the BJP-led National Democratic Alliance government.
The budget preparation process involves thorough planning and traditional ceremonies. One notable tradition is the ‘Halwa Ceremony,’ which marks the beginning of the budget printing process. During this event, a large batch of halwa, a sweet dish, is prepared and shared among the Ministry of Finance staff, who are then confined within North Block to maintain the confidentiality of the budget details until its presentation. This ritual emphasizes the strict secrecy maintained during the final stages of the budget formulation.
After these consultations, the feedback collected will be integrated into the budget drafting process. The Finance Minister and her team will finalize the budget proposals, which will then be reviewed and approved by the Union Cabinet. The finalized budget is expected to be presented in Parliament in the third week of July, outlining the fiscal policies and economic priorities for the coming year.
As the government prepares for the budget announcement, there is widespread anticipation across various sectors. Stakeholders are keenly awaiting the detailed fiscal policies and economic strategies that will be unveiled, which will affect tax policies, government spending, and economic reforms. The budget presentation is a critical event, providing a strategic direction for India’s economic future and demonstrating the government's commitment to tackling both current challenges and long-term growth goals.