Tradition Meets Strategy: Halwa Ceremony Launches Union Budget 2025-26

The annual Halwa ceremony, a symbolic gesture marking the finalization of India's Union Budget, is scheduled at North Block. Finance Minister Nirmala Sitharaman will lead the event as preparations for the 2025-26 budget conclude, setting the stage for its presentation amid economic challenges and expectations for strategic economic guidance.

The traditional Halwa ceremony, a recognized custom marking the final stages of the Union Budget preparation for 2025-26, is set to take place at North Block on Friday evening. Finance Minister Nirmala Sitharaman will lead the ceremony, accompanied by Minister of State Pankaj Chaudhary and several key officials involved in budget preparation.

The Halwa ceremony, a notable event, is performed annually before the budget 'lock-in' process starts. The event involves preparing the Indian sweet dish, halwa, in a large 'kadhai,' with the Finance Minister offering halwa to officials as a gesture of gratitude for their hard work. This ceremony also signifies the start of the crucial phase of budget document printing.

Signifying more than tradition, the Halwa ceremony marks the commencement of a lockdown within the finance ministry, prohibiting any official from exiting the premises until the budget is presented to Parliament. Historically, this lockdown has been a constant practice since 1980. As the session unfolds on January 31, anticipation builds for February 1, when the budget will be unveiled.

President Droupadi Murmu is slated to open the parliamentary budget session with her address, followed by a brief recess between February 14 and March 10. With her seventh budget presentation, Finance Minister Sitharaman surpasses former Prime Minister Morarji Desai's record, who served as finance minister from 1959 to 1964.

Continuing recent trends, the Union Budget 2025 will be presented in a paperless format, with expectations high for substantial announcements amidst challenging economic conditions. Recent GDP figures reveal subpar growth compared to projections, prompting an interest in the government's strategies for economic rejuvenation during Modi 3.0's tenure.

The Indian economy experienced a growth of 5.4% in Q3 of FY 2024-25, underperforming the RBI's forecast. The Reserve Bank has revised its growth estimates for the fiscal year to 6.6% from 7.2%. Earlier, the Economic Survey forecasted a conservative GDP growth of 6.5-7% for 2024-25.

However, India's robust growth trajectory featured an impressive 8.2% GDP rise in 2023-24 and marked the country as the fastest-growing major economy with 7.2% growth in 2022-23 and 8.7% in 2021-22, fueling both optimism and concern as the budget presentation approaches.

(With inputs from agencies.)