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Highlights of Union Budget 2025-26


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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

  1. Prime Minister Dhan-Dhaanya Krishi Yojana:
    • A program to develop 100 low-productivity agricultural districts, benefiting 1.7 crore farmers through partnerships with states.
  2. 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.
  3. 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.
  4. Comprehensive Programme for Vegetables & Fruits:
    • A program to boost production, supply chains, processing, and farmer incomes in partnership with states.
  5. Makhana Board in Bihar:
    • Establishment of a Makhana Board to enhance production, processing, and marketing of makhana.
  6. National Mission on High Yielding Seeds:
    • Aimed at developing and commercializing over 100 high-yield seed varieties.
  7. Fisheries Development Framework:
    • Sustainable harnessing of fisheries in India’s Exclusive Economic Zone, with a focus on Andaman & Nicobar and Lakshadweep Islands.
  8. Mission for Cotton Productivity:
    • A 5-year mission to improve cotton productivity and promote extra-long staple cotton varieties.
  9. Enhanced Credit through KCC:
    • Loan limits under the Modified Interest Subvention Scheme increased from ₹3 lakh to ₹5 lakh.
  10. 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

  1. Revised MSME Classification Criteria:
    • Investment and turnover limits for MSMEs increased by 2.5 and 2 times, respectively.
  2. 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.
  3. Fund of Funds for Startups:
    • A new Fund of Funds with a ₹10,000 crore corpus to support startups.
  4. Scheme for First-time Entrepreneurs:
    • Term loans up to ₹2 crore for 5 lakh women, SC, and ST entrepreneurs over the next 5 years.
  5. 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.
  6. Measures for the Toy Sector:
    • A scheme to make India a global hub for high-quality, innovative, and sustainable toys.
  7. Support for Food Processing:
    • A National Institute of Food Technology, Entrepreneurship, and Management to be established in Bihar.
  8. 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

  1. 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.
  2. 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.
  3. 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

  1. Export Promotion Mission:
    • A mission with sectoral targets driven by Ministries of Commerce, MSME, and Finance.
  2. BharatTradeNet:
    • A unified platform for trade documentation and financing solutions.
  3. National Framework for GCCs:
    • A framework to promote Global Capability Centres in tier 2 cities.

Reforms as Fuel: Financial Sector Reforms

  1. FDI in Insurance Sector:
    • FDI limit raised to 100% for companies investing premiums in India.
  2. Credit Enhancement Facility by NaBFID:
    • Partial Credit Enhancement Facility for corporate bonds in infrastructure.
  3. Grameen Credit Score:
    • Public sector banks to develop a credit score framework for rural SHGs.
  4. Jan Vishwas Bill 2.0:
    • Decriminalization of over 100 provisions in various laws.

Direct Tax Reforms

  1. 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%
  2. TDS/TCS Rationalization:
    • Doubled TDS limit for senior citizens’ interest income to ₹1 lakh.
    • Increased TDS threshold on rent to ₹6 lakh.
  3. Ease of Doing Business:
    • Simplified tax compliance for small charitable trusts.
    • Safe harbor rules expanded for international taxation.

Indirect Tax Reforms

  1. Customs Duty Rationalization:
    • Removal of seven tariff rates, leaving only eight rates.
    • Exemptions for 36 lifesaving drugs and concessional duty for 6 others.
  2. Support for Domestic Manufacturing:
    • Duty exemptions for critical minerals, EV battery components, and shipbuilding materials.
  3. 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.

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