The Union Budget 2025-26, presented by Finance Minister Smt. Nirmala Sitharaman, focuses on economic growth, employment generation, and support for various sectors, including agriculture, MSMEs, infrastructure, and taxation. Let’s take a look at the key highlights and their impact on different areas of the economy.
Economic Overview
- The total expenditure for 2025-26 is estimated at ₹50.65 lakh crore, while net tax receipts are ₹28.37 lakh crore.
- The fiscal deficit is projected at 4.4% of GDP.
- Capital expenditure allocation stands at ₹11.21 lakh crore, aimed at boosting infrastructure development.
Agriculture and Rural Development
- Prime Minister Dhan-Dhaanya Krishi Yojana: A new program covering 100 districts with low agricultural productivity to benefit 1.7 crore farmers.
- Aatmanirbharta in Pulses: A six-year mission to boost production of Tur, Urad, and Masoor, with procurement support from NAFED and NCCF.
- National Mission on High Yielding Seeds: A program to improve research, development, and distribution of high-yield seeds.
- Urea Plant in Assam: A new plant with an annual capacity of 12.7 lakh metric tons to enhance fertilizer supply.
Support for MSMEs and Entrepreneurs
- Revised MSME Classification: Investment and turnover limits for classification have been increased by 2.5 and 2 times, respectively.
- Customized Credit Cards: ₹5 lakh limit credit cards for micro enterprises under the Udyam portal.
- Fund of Funds for Startups: A fresh contribution of ₹10,000 crore to support new businesses.
- New Scheme for Women and SC/ST Entrepreneurs: Term loans up to ₹2 crore for 5 lakh first-time entrepreneurs.
Investments in Infrastructure and Innovation
- 50,000 Atal Tinkering Labs in government schools to promote innovation among students.
- Broadband connectivity for all government secondary schools and primary health centers in rural areas.
- Expansion of Medical Education: 10,000 additional medical seats to be added next year, with a target of 75,000 seats in five years.
- Day Care Cancer Centres: 200 centres to be set up in 2025-26, expanding to all district hospitals within three years.
- National Geospatial Mission: Development of foundational geospatial infrastructure and data to enhance technological growth.
Direct Tax Reforms: More Money in Your Hands
- No personal income tax on income up to ₹12 lakh (₹12.75 lakh for salaried individuals due to a standard deduction of ₹75,000).
- Revised tax slabs under the new regime:
- ₹0 – ₹4 lakh: No tax
- ₹4 – ₹8 lakh: 5%
- ₹8 – ₹12 lakh: 10%
- ₹12 – ₹16 lakh: 15%
- ₹16 – ₹20 lakh: 20%
- ₹20 – ₹24 lakh: 25%
- Above ₹24 lakh: 30%
- Higher tax deduction limits:
- Senior citizens can now claim ₹1 lakh deduction on interest income.
- TDS limit on rent increased from ₹2.4 lakh to ₹6 lakh.
Boosting Exports and Manufacturing
- Export Promotion Mission: A new drive to enhance international trade with sectoral targets.
- Make in India Manufacturing Mission: A program for small, medium, and large industries to strengthen local production.
- Support for Toy Industry: Focus on high-quality, sustainable toys to make India a global hub.
- Relief for Electronics Industry: Lower customs duty on key components to support domestic production.
The Union Budget 2025-26 prioritizes economic growth by investing in agriculture, MSMEs, infrastructure, and education while reducing the tax burden on individuals. With reforms aimed at self-reliance, entrepreneurship, and job creation, the budget lays a strong foundation for India’s future development – JSPCO