
Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, presented the Union Budget 2025-26 in Parliament today. The budget outlines key fiscal estimates and strategic initiatives across various sectors to drive economic growth and development. Below are the highlights:
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
- Gross Market Borrowings: ₹14.82 lakh crore
- Capex Expenditure: ₹11.21 lakh crore (3.1% of GDP)
Agriculture as the 1st Engine of Development
- Prime Minister Dhan-Dhaanya Krishi Yojana:
- A program to develop 100 low-productivity agricultural districts, benefiting 1.7 crore farmers through partnerships with states.
- Building Rural Prosperity and Resilience:
- A multi-sectoral initiative to address under-employment in agriculture through skilling, technology, and rural economic revitalization. Phase 1 will cover 100 districts.
- Mission for Aatmanirbharta in Pulses:
- A 6-year mission focusing on Tur, Urad, and Masoor pulses. NAFED and NCCF will procure these pulses over the next 4 years.
- Comprehensive Programme for Vegetables & Fruits:
- A program to boost production, supply chains, processing, and farmer incomes in partnership with states.
- Makhana Board in Bihar:
- Establishment of a Makhana Board to enhance production, processing, and marketing of makhana.
- National Mission on High Yielding Seeds:
- Aimed at developing and commercializing over 100 high-yield seed varieties.
- Fisheries Development Framework:
- Sustainable harnessing of fisheries in India’s Exclusive Economic Zone, with a focus on Andaman & Nicobar and Lakshadweep Islands.
- Mission for Cotton Productivity:
- A 5-year mission to improve cotton productivity and promote extra-long staple cotton varieties.
- Enhanced Credit through KCC:
- Loan limits under the Modified Interest Subvention Scheme increased from ₹3 lakh to ₹5 lakh.
- Urea Plant in Assam:
- A new urea plant with a capacity of 12.7 lakh metric tons to be set up in Namrup, Assam.
MSMEs as the 2nd Engine of Development
- Revised MSME Classification Criteria:
- Investment and turnover limits for MSMEs increased by 2.5 and 2 times, respectively.
- Credit Cards for Micro Enterprises:
- Customized credit cards with a ₹5 lakh limit for micro-enterprises registered on the Udyam portal. 10 lakh cards to be issued in the first year.
- Fund of Funds for Startups:
- A new Fund of Funds with a ₹10,000 crore corpus to support startups.
- Scheme for First-time Entrepreneurs:
- Term loans up to ₹2 crore for 5 lakh women, SC, and ST entrepreneurs over the next 5 years.
- Focus Product Scheme for Footwear & Leather:
- A scheme to enhance productivity, quality, and exports in the footwear and leather sectors, targeting ₹4 lakh crore turnover and ₹1.1 lakh crore exports.
- Measures for the Toy Sector:
- A scheme to make India a global hub for high-quality, innovative, and sustainable toys.
- Support for Food Processing:
- A National Institute of Food Technology, Entrepreneurship, and Management to be established in Bihar.
- National Manufacturing Mission:
- A mission to further the “Make in India” initiative, covering small, medium, and large industries.
Investment as the 3rd Engine of Development
- Investing in People:
- Enhanced cost norms for Saksham Anganwadi and Poshan 2.0.
- 50,000 Atal Tinkering Labs to be set up in government schools.
- Broadband connectivity for all government secondary schools and primary health centers.
- Expansion of medical education with 10,000 additional seats next year and 75,000 seats over 5 years.
- Day Care Cancer Centres in all district hospitals by 2028.
- Investing in the Economy:
- ₹1.5 lakh crore interest-free loans to states for capital expenditure.
- Asset Monetization Plan 2025-30 to generate ₹10 lakh crore for new projects.
- Urban Challenge Fund of ₹1 lakh crore for city redevelopment and sanitation.
- Nuclear Energy Mission with ₹20,000 crore for Small Modular Reactors (SMRs).
- Maritime Development Fund with a ₹25,000 crore corpus.
- Modified UDAN scheme to enhance regional connectivity to 120 new destinations.
- Investing in Innovation:
- ₹20,000 crore for private sector-driven R&D and innovation.
- Deep Tech Fund of Funds to support next-gen startups.
- 10,000 PM Research Fellowships for technological research.
- National Geospatial Mission for foundational geospatial infrastructure.
Exports as the 4th Engine of Development
- Export Promotion Mission:
- A mission with sectoral targets driven by Ministries of Commerce, MSME, and Finance.
- BharatTradeNet:
- A unified platform for trade documentation and financing solutions.
- National Framework for GCCs:
- A framework to promote Global Capability Centres in tier 2 cities.
Reforms as Fuel: Financial Sector Reforms
- FDI in Insurance Sector:
- FDI limit raised to 100% for companies investing premiums in India.
- Credit Enhancement Facility by NaBFID:
- Partial Credit Enhancement Facility for corporate bonds in infrastructure.
- Grameen Credit Score:
- Public sector banks to develop a credit score framework for rural SHGs.
- Jan Vishwas Bill 2.0:
- Decriminalization of over 100 provisions in various laws.
Direct Tax Reforms
- Tax Relief for Middle Class:
- No income tax for incomes up to ₹12 lakh (₹12.75 lakh for salaried individuals with standard deduction).
- 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:
- Doubled TDS limit for senior citizens’ interest income to ₹1 lakh.
- Increased TDS threshold on rent to ₹6 lakh.
- Ease of Doing Business:
- Simplified tax compliance for small charitable trusts.
- Safe harbor rules expanded for international taxation.
Indirect Tax Reforms
- Customs Duty Rationalization:
- Removal of seven tariff rates, leaving only eight rates.
- Exemptions for 36 lifesaving drugs and concessional duty for 6 others.
- Support for Domestic Manufacturing:
- Duty exemptions for critical minerals, EV battery components, and shipbuilding materials.
- Export Promotion:
- Extended time limits for handicraft exports and duty exemptions for leather and marine products.
The Union Budget 2025-26 aims to foster inclusive growth, boost innovation, and strengthen India’s position as a global economic powerhouse.