On January 24, 2025, Finance Minister Nirmala Sitharaman took part in the traditional ‘halwa’ ceremony, signaling the final stage of preparations for the Union Budget 2025-26, which will be unveiled on February 1, 2025, in the Lok Sabha. This ceremony is a customary ritual that involves the preparation and serving of a traditional dessert, ‘halwa,’ to officials and staff members of the Ministry of Finance who have been diligently involved in drafting the Budget.

The event, held in the basement of North Block—home to the Finance Ministry—was attended by high-ranking officials, including Minister of State for Finance Pankaj Chaudhary, Finance Secretary Tuhin Kanta Pandey, and Economic Affairs Secretary Ajay Seth. During the ceremony, the Finance Minister also visited the Budget Press and reviewed preparations, offering her best wishes to the team as they entered the final phase of the budget process.

A Tradition with Significance

The ‘halwa’ ceremony holds symbolic importance in the Indian Budget process. It marks the beginning of the ‘lock-in’ period for the officials working on the budget. During this period, they are confined to the basement of North Block to ensure secrecy around the final budget documents. This tradition has been observed for years, although the process has evolved over time.

In the past, printing of budget documents was a lengthy process, with staff required to stay in the press for up to two weeks. However, the shift to a paperless format in recent years has shortened this period to just five days, while the distribution of documents now largely occurs through the ‘Union Budget Mobile App’ for easy access.

Union Budget 2025-26: What to Expect

The Union Budget 2025-26 is set to be presented by Sitharaman on February 1, 2025, against the backdrop of a moderating GDP growth rate of 6.4% for the fiscal year, compared to 8.2% in the previous year. This year’s budget is expected to focus on addressing key challenges such as rising prices and boosting consumption. Several stakeholders, including Congress, have already called for relief measures to combat inflation, while Barclays has suggested that tax cuts for individuals could stimulate spending.

The government is also expected to continue with its paperless approach to the budget, a practice that began in 2021. This move is in line with efforts to modernize the budget presentation process while maintaining transparency and accessibility for the public.

The Budget Press and Legacy of Secrecy

The printing of budget documents at North Block’s dedicated press has been an integral part of the process for decades. Prior to 1980, documents were printed at Rashtrapati Bhavan, but the operation moved to North Block after a security breach in 1950. The tradition of maintaining secrecy around the final budget documents has remained central, with officials entering the ‘lock-in’ period to ensure no leaks.

While the Narendra Modi government has made several changes to the budget process, such as merging the Rail Budget with the main Budget in 2017 and advancing the date of presentation, the halwa ceremony continues to be an important tradition that marks the culmination of months of preparation.

As the Budget 2025-26 approaches, all eyes will be on the Finance Minister’s speech as she presents the government’s roadmap for the coming fiscal year, with expectations that it will address pressing economic concerns while setting the stage for India’s continued growth.