Table of Contents
Union Budget 2025
Union Budget 2025 highlights: Finance Minister Nirmala Sitharaman presented the Union budget for 2025-26 in the parliament on 1st Feb 2025. Read the complete details and highlight of Union budget 2025. Union Budget 2025 aims to initiate transformative reforms across six domains. During the next five years, these will augment our growth potential and global competitiveness. Read the Union Budget 2025 Highlights from the below article.
- Taxation
- Power Sector
- Urban Development
- Mining
- Financial Sector
- Regulatory Reforms
Budget Allocation by Sector:
| Sector | Expenditure |
| Defence | 4,91,732 |
| Rural Development | 2,66,817 |
| Home Affairs | 2,33,211 |
| Agriculture and Allied Activities | 1,71,432 |
| Education | 1,28,650 |
| Health | 98,311 |
| Urban Development | 96,311 |
| IT & Telecom | 95,298 |
| Energy | 81,174 |
| Commerce & Industry | 65,553 |
| Social Welfare | 60,052 |
| Scientific Department | 55,679 |
Economic
- Investment-friendly index to be introduced to boost competition among states.
- Revised fiscal deficit for FY 2025 set at 4.8%.
- Capital expenditure to reach ₹10.18 lakh crore.
New Tax Regime: Latest Income Tax Slab (FY 2025–26)
The latest income tax slabs under the New Tax Regime for FY 2025–26 feature revised brackets designed to reduce the tax burden on middle-income earners. Here’s a simplified breakdown:
| Income Range (₹) | Tax Rate (%) |
| Up to ₹4,00,000 | NIL |
| ₹4,00,000 – ₹8,00,000 | 5 |
| ₹8,00,000 – ₹12,00,000 | 10 |
| ₹12,00,000 – ₹16,00,000 | 15 |
| ₹16,00,000 – ₹20,00,000 | 20 |
| ₹20,00,000- ₹24,00,000 | 25 |
| Above 24,00,000 | 30 |
- ₹12 lakh income: ₹80,000 saved (0% effective rate).
- ₹16 lakh income: ₹50,000 saved (7.5% effective rate).
- ₹20 lakh income: ₹90,000 saved (10% effective rate).
- ₹50 lakh income: ₹1.1 lakh saved (21.6% effective rate).
- Revenue Impact: ₹1 lakh crore direct tax revenue forgone.
New Income Tax Bill: Simplified structure with 50% fewer provisions to reduce litigation.
Key highlights:
- No income tax on income up to ₹12 lakh.
- Salaried taxpayers with income up to ₹12.75 lakh will have no tax liability.
- Under the new tax regime, income up to ₹4 lakh is tax-free.
- Personal income tax reforms aimed at benefiting the middle class.
- TDS on rent threshold increased from ₹2.4 lakh to ₹6 lakh annually.
- Senior citizens‘ tax deduction limit doubled to ₹1 lakh.
Start-ups
- Tax benefits for start-ups to continue for five years from inception.
- With quality products, MSMEs are responsible for 45 % of our exports. Investment and turnover limit for classification of MSMEs enhanced
- India Post to be transformed into large public logistic organisation with 1.5 lakh rural post offices to become catalyst for rural economy.
Banking & Insurance
- A Grameen Credit Score Framework will be introduced for rural India.
- FDI limit in the insurance sector to be increased to 100%.
Housing
- ₹15,000 crore fund allocated to expedite the completion of one lakh housing units.
Agriculture & Rural Development
- Prime Minister Dhan-Dhaanya Krishi Yojana: Targets 100 low-productivity districts, benefiting 1.7 crore farmers.
- Mission for Pulses Self-Reliance (Tur, Urad, Masoor): 6-year plan to boost productivity, climate-resilient seeds, and farmer income.
- Kisan Credit Card (KCC): Kisan Credit Card loan limitraised from ₹3 lakh to ₹5 lakh for 7.7 crore farmers, fishermen, and dairy farmers.
- Rural Prosperity Programme: Focus on skilling, technology, and reducing under-employment; Phase-1 covers 100 agri-districts.
- Makhana Board: To enhance production and marketing of makhana in Bihar.
- Western Koshi Canal Project: Benefits 50,000+ hectares in Bihar’s Mithilanchal region.
MSMEs, Entrepreneurship & Employment
- Micro/Small Enterprises: Cover raised to ₹10 crore (additional ₹1.5 lakh crore credit in 5 years).
- Credit guarantee coverage for MSMEs to be increased from ₹5 crore to ₹10 crore.
- Startups: Cover doubled to ₹20 crore; 1% fee for 27 focus sectors.
- Customized Credit Cards: ₹5 lakh limit for 10 lakh micro-enterprises on Udyam portal.
- Fund of Funds for Startups: ₹10,000 crore corpus.
- Footwear & Leather Sector: Aiming ₹4 lakh crore turnover and 22 lakh jobs; duty exemption on wet blue leather.
- Gig Workers: Identity cards, healthcare under PM Jan Arogya Yojana for 1 crore workers.
Healthcare & Education
- Cancer Care: 200 Day Care Centres in district hospitals by 2025–26.
- Customs Duty Exemptions: 36 lifesaving drugs fully exempted; 6 drugs at 5% duty.
- Medical Education: 10,000 new seats in 2025–26 (75,000 target in 5 years).
- Atal Tinkering Labs: 50,000 to be set up in government schools.
- Bharat Net: Broadband for all rural secondary schools and primary health centres.
Infrastructure & Urban Development
- Three-year projects to be implemented under PPP mode.
- ₹1.5 lakh crore interest-free loans for states to fund infrastructure reforms.
- Over 100 new regional airports to be developed over the next 10 years.
- UDAN 2.0 to connect 120 new airports, with a focus on Northeast and Bihar.
- SWAMIH Fund 2: ₹15,000 crore for completing 1 lakh housing units; 40,000 units by 2025.
- Urban Challenge Fund: ₹1 lakh crore for cities as growth hubs, water, and sanitation.
- Maritime Development Fund: ₹25,000 crore corpus for shipbuilding and port infrastructure.
- UDAN Scheme Expansion: 120 new regional connectivity destinations; 4 crore passengers targeted.
Energy & Environment
- Nuclear Energy Mission: ₹20,000 crore for Small Modular Reactors (SMRs); 5 operational by 2033.
- Clean Tech Manufacturing: Incentives for EV batteries, solar PV cells, and wind turbines.
- Critical Minerals: Duty exemptions on cobalt, lithium-ion scrap, and 12 others to boost domestic production.
- Nuclear Energy 100 gigawatts by 2047
Tourism & Export Promotion
- 50 Tourist Destinations: Upgrade via skill programs, homestay loans, and e-visa streamlining.
- Export Promotion Mission: Joint initiative by Commerce, MSME, and Finance Ministries for credit access and cross-border support.
Reforms & Ease of Doing Business
- FDI in Insurance: Limit raised to 100% for companies reinvesting premiums in India.
- Jan Vishwas Bill 2.0: Decriminalizes 100+ legal provisions.
- Regulatory Reforms: High-Level Committee to review non-financial sector licenses and certifications.
- Extended Deadlines: Startup incorporation benefits extended till 1.4.2030; IFSC benefits till 31.3.2030.
Indirect Tax Measures
- Customs Simplification: Reduced to 8 tariff rates; Social Welfare Surcharge exempted on 82 lines.
- Import Flexibility: End-use period for inputs extended to 1 year; quarterly reporting instead of monthly.
Women’s Development
- ₹2 crore term loan for women and first-time entrepreneurs from SC/ST and backward classes.
Rural India
- Nutritional support for over 8 crore children and 1 crore lactating mothers.
Make in India & Technology
- National Manufacturing Mission to provide policy support and monitoring.
- New clean technology manufacturing mission to be launched.
- Nuclear Energy Mission to boost R&D efforts.
- Jal Jeevan Mission extended until 2028.
- Centre of Excellence in AI to be set up with an allocation of ₹500 crore.
- 25 additional capital goods to support EV battery manufacturing.
Union Budget 2025 key Highlights (Ambitious_baba)
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