Union Budget 2025 may introduce changes in income tax slabs

Global financial services company Nomura on Thursday said the Centre will focus on both fiscal consolidation and growth-supportive measures in the upcoming Union Budget for 2025-2026, predicting that the government may introduce changes to the personal income tax slabs to encourage consumer spending.

Nomura expects India to surpass its fiscal



deficit target for the financial year 2025, estimating the deficit at 4.8 per cent of the GDP, slightly lower than the earlier forecast of 4.9 per cent.

This change is due to a reduction in capital expenditure (capex) spending. For FY 2026, Nomura forecasts that capex will remain at 4.4 per cent of GDP, in line with India’s medium-term goals.