Sitharaman may change 75-years-old budget tradition:Economy’s vision possibly in Part B of FM’s speech, currently this part contains tax and policy announcements

Finance Minister Nirmala Sitharaman may break a 75-year-old tradition while presenting the upcoming budget scheduled for February 1. The Union Minister may present a detailed vision for the future of India’s economy in Part B of her budget speech. As per the tradition, the most important points of the central budget were presented in Part A of her speech, while Part B was usually limited to tax and policy announcements. NDTV made these claims, citing sources that both the government’s short-term priorities and long-term targets may be presented in Part B of the budget. As It will emphasise India’s local strengths and global ambitions as it enters the second phase of the 21st century. Economists in India and abroad are keeping a close watch on this budget, as it is expected to reveal not just tax changes, but a comprehensive roadmap for the country’s economic direction. Sitharaman to Present Budget for the Ninth Time This will be Sitharaman’s ninth consecutive budget. In her first budget in 2019, she replaced the leather briefcase, used for decades to carry budget documents, with a traditional ‘bahi-khata’ wrapped in red cloth. This year’s budget, like the previous four years, will be paperless. After achieving the roadmap for fiscal consolidation with a deficit of 4.5 percent of GDP in FY2026, markets will keep an eye on the direction of reduction in the debt-to-GDP ratio in the FY2027 budget. They will also see if the government provides any specific figure for the fiscal deficit for the next financial year. The government’s planned capital expenditure for this financial year has been set at 11.2 lakh crore rupees. Given the caution of private sector players, the government may maintain its focus on capital expenditure in the latest budget. Capital expenditure will be increased by 10-15 percent from the current level. Special attention will also be paid to expenditure on major schemes like VB G RAM G, as well as key sectors like health and education.