Budget 2025: FM To Hold Traditional Halwa Ceremony To Lock-In Budget Document; Date, Significance & Importance

Budget 2025: Finance Minister Nirmala Sitharaman is likely to perform the traditional old Halwa ceremony for Budget 2025, which will mark the final stage of the Budget preparation. The ceremony is going to be held on Friday, January 24, in the North Block. This will be Sitharaman's eighth halwa ceremony since becoming finance minister.

During the ceremony, Sitharaman will be joined by Minister of State Pankaj Chaudhary and secretaries. Officers and staffs related to the Budget preparation will most likely be present as well.

FM will carry the Budget speech in the upper Parliament on February 1, 2025, at 11:00 AM. The Parliamentary session will commence on January 31, 2025, and will end on April 4.

What To Expect In Budget 2025?

Pranav Haridasan, MD and CEO, Axis Securities said, "The Union Budget is expected to take a pragmatic approach, balancing growth aspirations with fiscal discipline. With the deficit expected to stay within the projected band, the government will likely focus on infrastructure expansion to drive down logistics costs by 4-6% of GDP over the next few years. That said, unhinged capital expenditure from the centre is unlikely - given how important balancing the fiscal situation is - despite the focus on elevating economic growth."

Haridasan added, "Taxation expectations are centered around rationalizing capital gains tax to simplify compliance and encourage broader market participation. While there has been some speculation about a cut in the Securities Transaction Tax (STT), this seems unlikely given the government's revenue focus. Instead, there could be targeted relief for individual taxpayers through higher deductions under section 80C and potential adjustments in the new tax regime to support consumption."

He also said, continued expansion of the Production-Linked Incentive (PLI) scheme will remain a key focus. The government may introduce new incentives to encourage R&D, positioning India as a global innovation hub. The falling rupee has made imports expensive but created opportunities to boost exports. Although uncertainties such as protectionist policies are likely to make headlines, India has a chance to position itself as a key global player. We expect the upcoming budget to address these dynamics and pave the way for more innovation.

What Is Halwa Ceremony?

In general terms, a customary Halwa ceremony is performed every year before the "lock-in" process of Budget preparation begins.

Brokerage ICICI Direct on its website explained that the ceremony typically takes place a few days (9 to 10 days) before the commencement of the budget session of the Parliament. The ceremony marks the commencement of the process of the printing Union Budget (this year, it is an interim budget). The ceremony is hosted by the Finance Minister and other ministers involved in the budget-making process.

In the event, a large vessel is filled with ghee, sugar, wheat flour, and sometimes nuts. This mixture is then cooked slowly over a flame until it thickens to form halwa. Once the halwa is ready, it is distributed among the staff and officials involved in the budget-making process.

Importance Of Halwa Ceremony Before Budget?

ICICI Direct highlighted three key importance of Halwa Ceremony. These are:

1. One of the most intriguing aspects of the Halwa Ceremony is its association with secrecy. After the ceremony, the officials and staff involved in the budget-making process are said to be confined to their offices until the budget is presented in the Parliament. During this time, phone calls are supervised, officials are not allowed to move out and must stay under surveillance from CCTV cameras and the Intelligence Bureau. This seclusion is intended to maintain confidentiality and prevent any leaks or premature disclosures of budgetary proposals.

2. The Halwa Ceremony is deeply rooted in Indian culture and tradition. The preparation and sharing of sweets hold cultural significance in many Indian ceremonies and festivals. By incorporating this ritual into this sphere, the ceremony bridges the gap between tradition and modern governance practices.

3. While the Halwa Ceremony may seem like an internal affair of governmental institutions, it also serves to raise public awareness about the forthcoming budget. The event often garners media attention, sparking discussions about fiscal policies, allocations, and the government's priorities for the upcoming financial year. You are made aware of the upcoming budget through articles like these.