As the budget is interim, the prevailing view is that it remains a non-event

Mumbai: Since the budget for the next financial year, which will be presented on February 1, is an interim one, it does not seem possible to make any major announcements. A major announcement in terms of new taxes or spending is also less likely and the budget will be a non-event.

However, Finance Minister Nirmala Sitharaman may try to give an indication of what the policies will be and what the government envisages for fiscal discipline if her government is installed next, an analyst said.

Policy directions are expected to be similar to the last few budgets and the budget will also reflect the government's goal of achieving growth with fiscal discipline. Analysts also said that while India's fiscal position is healthy in terms of tax compliance, no major announcement to increase tax collection is likely. said.

Factors like strong tax collection, proportional dividend from the Reserve Bank, moderate reduction in capex, higher subsidy expenditure on food and fertilizers, poor achievement of disinvestment targets, etc. will offset the blow.

Net borrowing is expected to be Rs 11.50 lakh crore in FY 2025. Which has been Rs 11.80 lakh crore in the current financial year.

After the fiscal year 2024 tax to GDP ratio remained strong, the tax to GDP ratio is expected to remain stable at 11.40 percent in the next financial year.

As the Lok Sabha elections are scheduled in April-May, the current government will present the interim budget to approve the revenue-expenditure proposals for the first four months of the new financial year. After the election, the new government to be installed at the center will present the budget for the full financial year.