Union Budget 2025-26 Summary

New Delhi, February 1, 2025 – Union Finance Minister Smt. Nirmala Sitharaman presented the Union Budget 2025-26 in Parliament today, unveiling substantial tax reliefs, key reforms in agriculture and MSMEs, and robust investment initiatives.

Key Highlights:

1. Tax Relief for Middle Class:
   • No income tax on annual income up to ₹ 12 lakh under the new regime.
   • Salaried individuals earning up to ₹ 12.75 lakh annually will pay zero tax due to a standard deduction of ₹ 75,000.
   • Revised tax slabs aimed at boosting household savings and consumption.
2. Four Engines of Development Recognized:
   • Agriculture:
     • Prime Minister Dhan-Dhaanya Krishi Yojana to benefit 1.7 crore farmers across 100 districts with low agricultural productivity.
     • Mission for Aatmanirbharta in Pulses focusing on Tur, Urad, and Masoor.
     • Loan limits through Kisan Credit Cards (KCC) raised from ₹ 3 lakh to ₹ 5 lakh.
   • MSMEs:
     • Credit guarantee cover for MSMEs enhanced from ₹ 5 crore to ₹ 10 crore.
     • New scheme offering term loans up to ₹ 2 crore for 5 lakh first-time women, SC, and ST entrepreneurs.
     • National Manufacturing Mission launched to further ‘Make in India’.
   • Investment:
     • ₹ 1 lakh crore Urban Challenge Fund for ‘Cities as Growth Hubs’.
     • ₹ 20,000 crore allocated for Nuclear Energy Mission focusing on Small Modular Reactors.
     • 50,000 Atal Tinkering Labs to be set up in government schools over the next five years.
   • Exports:
     • Export Promotion Mission launched to boost international trade.
     • BharatTradeNet to streamline trade documentation and financing.
3. Fiscal Deficit and Revenue Projections:
   • Fiscal deficit estimated at 4.4% of GDP for FY 2025-26, down from 4.8% in FY 2024-25.
   • Total expenditure projected at ₹ 50.65 lakh crore with net tax receipts of ₹ 28.37 lakh crore.
4. Financial Sector Reforms:
   • FDI limit in the insurance sector raised from 74% to 100% for companies investing premiums domestically.
   • Jan Vishwas Bill 2.0 to decriminalize over 100 provisions across various laws.
5. Indirect Tax Reforms:
   • Basic Customs Duty (BCD) fully exempted on 36 lifesaving drugs.
   • BCD on Interactive Flat Panel Displays increased to 20%; reduced to 5% on open cells to promote domestic manufacturing.
   • Additional capital goods for EV and mobile battery manufacturing exempted from BCD.
     Source:PIB

Also Read: Union Budget 2025-26 Unveils Major Reforms Across Agriculture, MSMEs, and Taxation