India’s Union Budget for the fiscal year 2025-26, presented by Finance Minister Nirmala Sitharaman on February 1, 2025, introduces several key initiatives aimed at stimulating economic growth, providing tax relief to the middle class, and promoting inclusive development across various sectors.
India’s Union Budget 2025-26 Key Highlights
1. Income Tax Reforms
- Increased Tax Exemption Limit: The budget raises the personal income tax exemption threshold to ₹12 lakh per annum (₹1 lakh per month), effectively eliminating tax liability for individuals earning up to this amount under the new tax regime. For salaried taxpayers, the exemption limit is further extended to ₹12.75 lakh, including a standard deduction of ₹75,000.
- Revised Tax Slabs: The new tax structure aims to reduce the tax burden on the middle class, increasing disposable income and encouraging household consumption, savings, and investment.
2. Fiscal Parameters
- Total Expenditure: The government has allocated ₹50.65 lakh crore for the fiscal year 2025-26, marking a 7.4% increase over the previous fiscal year.
- Fiscal Deficit: The fiscal deficit is projected at 4.4% of GDP, aligning with the government’s commitment to fiscal consolidation while supporting economic growth initiatives.
3. Agriculture and Rural Development
- Prime Minister Dhan-Dhaanya Krishi Yojana: This new initiative targets 100 districts with low agricultural productivity, benefiting 1.7 crore farmers by introducing improved farming techniques.
- Crop Production Missions: The budget introduces long-term programs to boost the production of pulses and cotton, reducing import dependence and enhancing domestic output.
4. Infrastructure and Investment
- Capital Expenditure: The government plans to increase capital spending to stimulate economic activity, particularly in infrastructure development projects.
- National Manufacturing Mission: A new initiative is proposed to strengthen the manufacturing sector, attract private investment, and position India as a global manufacturing hub.
5. Financial Sector Reforms
- Insurance Sector Liberalization: The budget proposes raising the Foreign Direct Investment (FDI) limit in the insurance sector to 100%, aiming to attract more foreign capital and foster growth.
- Regulatory Simplification: The government plans to simplify business regulations and introduce an investment friendliness index to improve the ease of doing business.
6. Social Welfare and Employment
- Gig Economy Support: Measures have been introduced to formalize gig economy workers, improving their access to healthcare and social welfare benefits.
- Youth Employment Initiatives: The government will invest in startups, innovation, and skill development programs to generate job opportunities for young professionals.
7. Energy and Environment
- Nuclear Energy Mission: The government has allocated ₹20,000 crore to develop Small Modular Reactors as part of its strategy to achieve 100 GW of nuclear power by 2047, contributing to India’s sustainable energy goals.
These initiatives highlight the government’s focus on fostering economic growth, improving the standard of living, and promoting sustainability across key sectors.
For a detailed overview of the Union Budget 2025-26, visit the official Ministry of Finance website.
Budget 2025 in just 15 minutes Video | Kaam ki baat no bakwas
This video summarises 1 Hour 16 minutes of the Budget 2025-26 speech by Finance Minister Nirmala Sitharaman in just 14 minutes. We have covered everything you need to know about the 2024 budget to stay updated.
