The Union Budget 2025 highlights, presented by Finance Minister Smt. Nirmala Sitharaman, focuses on economic growth, agricultural development, infrastructure investment, and financial sector reforms. Key highlights include:
Budget Estimates 2025-26
- Total receipts (excluding borrowings): ₹34.96 lakh crore
- Total expenditure: ₹50.65 lakh crore
- Net tax receipts: ₹28.37 lakh crore
- Fiscal deficit: 4.4% of GDP
- Capital expenditure: ₹11.21 lakh crore (3.1% of GDP)
Agriculture and Rural Development
- Prime Minister Dhan-Dhaanya Krishi Yojana: Covering 100 agri-districts to enhance productivity and credit access.
- Mission for Aatmanirbharta in Pulses: A six-year initiative to boost the production of Tur, Urad, and Masoor.
- Comprehensive Programme for Vegetables & Fruits: Focus on production, processing, and fair pricing.
- Makhana Board in Bihar: Established for value addition and marketing of makhana.
- National Mission on High Yielding Seeds: Strengthening research for high-yield crop varieties.
- Fisheries Development: Sustainable framework for fisheries, focusing on Andaman & Nicobar and Lakshadweep.
- Mission for Cotton Productivity: A five-year plan to improve productivity and promote extra-long staple cotton.
- Enhanced Credit for Farmers: Kisan Credit Card (KCC) loan limit increased from ₹3 lakh to ₹5 lakh.
- Urea Plant in Assam: A new plant with a capacity of 12.7 lakh metric tons in Namrup.
MSME and Startup Support
- Revised MSME Classification: Investment and turnover limits increased by 2.5 and 2 times, respectively.
- Customized Credit Cards for Micro Enterprises: ₹5 lakh limit for registered micro enterprises, with 10 lakh cards issued in the first year.
- New Fund of Funds for Startups: ₹10,000 crore contribution for startup growth.
- Scheme for First-Time Entrepreneurs: Financial support for 5 lakh women and SC/ST entrepreneurs with term loans up to ₹2 crore.
- Focus Product Scheme for Footwear & Leather: Employment generation and industry competitiveness initiatives.
- Toy Sector Development: New scheme to establish India as a global toy manufacturing hub.
- Food Processing Support: Establishment of the National Institute of Food Technology in Bihar.
Investment and Infrastructure Development
- Saksham Anganwadi and Poshan 2.0: Enhanced nutrition support.
- Atal Tinkering Labs: 50,000 labs to be set up in government schools.
- Broadband Connectivity Expansion: Coverage for government schools and rural primary health centers.
- Expansion of IITs and Medical Colleges: Additional infrastructure in IITs and 10,000 new medical seats.
- Day Care Cancer Centers: To be set up in all district hospitals within three years.
- Strengthening Urban Livelihoods: Socio-economic upliftment programs for urban workers.
- PM SVANidhi Scheme Expansion: Enhanced loan limits and digital payment support.
- Public-Private Partnership in Infrastructure: A three-year project pipeline and incentives for state investments.
- Jal Jeevan Mission: Extended until 2028 with an increased budget.
- Greenfield Airport in Bihar: Expansion of Patna airport and a new airport at Bihta.
- Western Koshi Canal Project: Financial assistance for irrigation development in Bihar.
- Tourism Promotion: Development of top 50 tourist destinations in partnership with states.
Innovation and Export Growth
- Research, Development, and Innovation: ₹20,000 crore allocation for private sector-led research.
- Deep Tech Fund of Funds: To support next-generation startups.
- PM Research Fellowship: 10,000 fellowships for technological research in IITs and IISc.
- Gene Bank for Crop Germplasm: Establishment of a second gene bank for food security.
- National Geospatial Mission: Development of geospatial infrastructure and data.
- Export Promotion Mission: A dedicated mission to boost international trade and competitiveness.
Financial Sector Reforms
- FDI in Insurance Sector: Limit increased to 100% for companies investing the entire premium in India.
- NaBFID Credit Enhancement Facility: Support for corporate bonds in infrastructure.
- Pension Sector Reforms: Establishment of a regulatory coordination forum.
- Investment Friendliness Index of States: A new initiative to promote competitive federalism.
- Jan Vishwas Bill 2.0: Decriminalization of over 100 legal provisions.
Taxation Reforms
Direct Tax
- No income tax for individuals earning up to ₹12 lakh under the new tax regime.
- Standard deduction increased to ₹75,000 for salaried taxpayers.
- Revised tax slabs:
- 0-4 lakh: Nil
- 4-8 lakh: 5%
- 8-12 lakh: 10%
- 12-16 lakh: 15%
- 16-20 lakh: 20%
- 20-24 lakh: 25%
- Above 24 lakh: 30%
- TDS/TCS Rationalization: Reduction in the number of TDS rates and increased thresholds.
- Tax Relief for Senior Citizens: Tax-free interest income up to ₹1 lakh.
- Extended Tax Benefits for Startups: Incorporation deadline extended to 2030 for tax incentives.
Indirect Tax
- Customs Tariff Rationalization: Reduction to eight tariff rates.
- Import Duty Exemptions: Relief on 36 life-saving drugs and medical supplies.
- Support for Domestic Manufacturing: Duty reductions on electronic goods, textiles, and lithium-ion battery components.
- Export Promotion Measures: Relaxation in handicraft export timelines and tax benefits for marine products.
- Trade Facilitation Initiatives: Time limit fixed for provisional assessments and voluntary compliance incentives.
Conclusion
The Union Budget 2025-26 aims to drive economic growth through strategic investments, agricultural development, MSME support, and taxation reforms. With a strong focus on infrastructure, innovation, and financial inclusion, this