7 Expectations From Budget 2025
1. Conditional Capex Loans
Linking of state capex loans to performance metrics (capex achievement, welfare-to-capex ratio) to ensure fiscal responsibility.
2. Tax Simplification
Simplification of GST slabs and reform in dividend taxation (tax-deductible for companies or revert to prior practices) to boost disposable incomes.
3. Focus on Income
Prioritisation of household income growth via support for construction and targeted MSME assistance over simply boosting consumption.
4. Fiscal Consolidation
Targeting a 4.5 percent fiscal deficit in FY26 with 10 to15 percent capex growth despite slower revenue.
5. Sustainable Investment Focus
Shifting focus from stimulating corporate investment to creating an environment conducive to sustainable investment.
6. Healthcare Infrastructure Boost
Increased investment in healthcare infrastructure, especially in Tier 2 and Tier 3 cities, via public-private partnerships.
7. Affordable Diagnostics
Reduction of taxes on diagnostic equipment or consumables and consider tax exemptions to improve affordability and access.