Halwa Ceremony Marks Final Stage of 2025-26 Budget Preparation
New Delhi, January 23: The annual Halwa ceremony, a symbolic event that marks the conclusion of the budget preparation process, is scheduled to take place at the North Block on Friday evening. This tradition, a significant moment in the run-up to the Union Budget, signifies the final phase of work before the official “lock-in” of the Budget documents for the fiscal year 2025-26.
Finance Minister Nirmala Sitharaman will lead the ceremony, with Minister of State Pankaj Chaudhary and other senior officials from the Finance Ministry in attendance. The ceremony is attended by officers and staff involved in the exhaustive process of budget preparation, compiling, and finalization.
The Halwa ceremony holds deep significance in Indian government practices. The event sees the preparation of the sweet dish Halwa in a large ‘kadhai’ at the North Block, where the Finance Minister ceremoniously stirs the mixture. As part of the tradition, the minister serves the Halwa to everyone participating in the budget-making process, honoring their dedication and hard work.
The event also marks the commencement of the “lock-in” period for officials working on the budget. During this time, the Finance Ministry is essentially under lockdown, with officials not permitted to leave the ministry compound until the budget is formally presented in Parliament. This security measure ensures confidentiality during the crucial stages of finalizing the budget documents. The printing of the Union Budget takes place in the basement of the North Block, a practice that has been in place since 1980.
The Budget session of Parliament will begin on January 31, with the Union Budget scheduled for presentation on February 1. The session will run until April 4, with an inter-session break between February 14 and March 10. This year’s budget presentation will be Finance Minister Nirmala Sitharaman’s seventh, making her the longest-serving Finance Minister in terms of budget presentations. She has surpassed the previous record set by former Prime Minister Morarji Desai, who presented five annual budgets and one interim budget between 1959 and 1964.
This year’s budget, like its predecessors, will be delivered in a paperless format, and much anticipation surrounds the key announcements, particularly as the country grapples with weaker-than-expected GDP growth. The Indian economy grew by just 5.4% in the July-September quarter of 2024-25, falling short of the Reserve Bank of India’s forecast of 7%. As a result, the RBI has revised India’s growth forecast for 2024-25 down to 6.6% from an earlier estimate of 7.2%.
The Economic Survey, tabled earlier this year, projected India’s GDP growth for 2024-25 at 6.5-7%, acknowledging that expectations were higher due to recent slower growth. Despite the slowdown, India remains one of the fastest-growing major economies, having recorded an impressive 8.2% GDP growth for the fiscal year 2023-24.
As the countdown to the Budget presentation continues, all eyes are on the upcoming announcements, which are expected to outline the government’s economic vision and guidance for the remainder of the Modi 3.0 tenure. The 2025 Budget is expected to tackle current economic challenges and set the stage for future growth amidst a backdrop of weaker consumption and economic performance.
