The Union Budget 2008-09 is expected to be presented on February 29, this being a leap year.

The three-month long Budget session is likely to begin on February 25, government sources said.

Finance Minister P Chidambaram has already started pre-budget consultations with various experts.

Government is likely to raise the tax exemption limit from Rs 1.1 lakh a year to Rs 1.25 lakh but may not tinker with tax slabs. Taxable income of up to Rs 1.5 lakh will continue to attract 10% income tax.

Both the PM and FM are not in favour of announcing tax breaks. Though revenues have gone up, the FM has been wary of reducing rates. He has been more concerned over widening the tax net and stemming revenue loss.