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

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Shashank Bhat
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Union Budget 2025-26 Highlights Key Reforms in Agriculture, MSMEs, and Taxation - Ankita News

UNION BUDGET 2025-26

New Delhi, February 1, 2025 – Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, presented the Union Budget 2025-26 in Parliament today, outlining transformative reforms in agriculture, micro, small, and medium enterprises (MSMEs), infrastructure, and taxation.

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
  • Capital expenditure: ₹ 11.21 lakh crore (3.1% of GDP)

Agriculture Initiatives:

  1. Prime Minister Dhan-Dhaanya Krishi Yojana: Launch of the Developing Agri Districts Programme covering 100 districts, benefiting 1.7 crore farmers.
  2. Mission for Aatmanirbharta in Pulses: A six-year mission focusing on Tur, Urad, and Masoor pulses, with procurement by NAFED and NCCF over the next four years.
  3. Comprehensive Programme for Vegetables & Fruits: A new initiative to promote production, efficient supply chains, and fair pricing for farmers.
  4. Fisheries Framework: Sustainable development framework for fisheries with a focus on the Andaman & Nicobar and Lakshadweep Islands.
  5. Enhanced Credit Through KCC: Increase in loan limits under the Modified Interest Subvention Scheme from ₹ 3 lakh to ₹ 5 lakh.

MSME Reforms:

  1. Revised MSME Classification: Enhancement of investment and turnover limits 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.
  3. Fund of Funds for Startups: A new fund with a ₹ 10,000 crore contribution to support startups.
  4. Scheme for First-time Entrepreneurs: Term loans up to ₹ 2 crore for 5 lakh women, Scheduled Castes, and Scheduled Tribes over the next five years.

Tax Reforms:

  1. Direct Tax:
    • No personal income tax up to ₹ 12 lakh under the new regime.
    • Standard deduction of ₹ 75,000 for salaried taxpayers, increasing the exemption limit to ₹ 12.75 lakh.
    • Revised tax rates aimed at reducing middle-class tax burdens.
  2. Indirect Tax:
    • Rationalization of customs tariffs, reducing the number of tariff rates to eight.
    • Full exemption from Basic Customs Duty (BCD) on 36 lifesaving drugs and concessions on several others.
    • Support for domestic manufacturing with duty exemptions on critical minerals and electronic components.

Infrastructure & Investment:

  1. Public-Private Partnership (PPP) Projects: A 3-year project pipeline in PPP mode, with an outlay of ₹ 1.5 lakh crore in interest-free loans to states.
  2. Nuclear Energy Mission: ₹ 20,000 crore allocated for the development of Small Modular Reactors (SMRs).
  3. Tourism Development: Top 50 tourist destinations to be developed in partnership with states.

Source:PIB

Also Read: Union Budget 2025-26 Proposes Key GST Amendments to Enhance Trade Facilitation

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