Union Budget 2025-26: Key Highlights & Analysis
The Union Budget 2025-26, presented by Finance Minister Smt. Nirmala Sitharaman, focuses on fostering economic growth, improving tax policies, and strengthening social welfare programs. The budget is framed under the theme of 'Sabka Vikas' (Development for All) to promote balanced regional development and inclusive growth.
1. Tax Reforms and Benefits
- Income Tax Relief: Individuals earning up to ₹12 lakh per annum are exempt from income tax under the new tax regime.
- Standard Deduction: Salaried individuals earning up to ₹12.75 lakh annually benefit from a ₹75,000 standard deduction.
- Extended Time for Updated Returns: The window for filing updated income tax returns is extended to 4 years.
- TDS Threshold Increase: TDS on rent threshold raised from ₹2.4 lakh to ₹6 lakh.
2. Economic Growth Drivers
- Agriculture: Launch of PM Dhan-Dhaanya Krishi Yojana to boost agricultural productivity in 100 districts.
- MSMEs: Credit guarantee cover increased from ₹5 crore to ₹10 crore.
- Manufacturing: National Manufacturing Mission under ‘Make in India’.
- Exports: Measures to enhance international trade and ease restrictions.
3. Agriculture and Rural Development
- Aatmanirbharta in Pulses: Special focus on Tur, Urad, and Masoor.
- Kisan Credit Cards: Loans up to ₹5 lakh with improved interest subvention.
- Infrastructure: Investments in rural roads, irrigation, and storage.
4. Fiscal Deficit Management
- Fiscal deficit for FY 2025-26: Estimated at 4.8%.
- Target for FY 2026-27: Reduce to 4.4%.
5. Education and Skill Development
- 50,000 Atal Tinkering Labs in government schools.
- ₹500 crore AI Centre of Excellence for Education.
- Strengthening digital literacy programs in rural areas.
6. Infrastructure and Urban Development
- ₹1 lakh crore for Urban Challenge Fund.
- Expansion of affordable housing schemes.
- Launch of Smart City 2.0 initiative.
7. Energy and Transportation
- Nuclear Energy Mission: ₹20,000 crore investment in Small Modular Reactors.
- UDAN Scheme: Expansion with 120 new destinations.
- Investment in solar, wind, and hydroelectric energy.
8. Social Welfare and Employment
- Gig Economy Workers: Identity cards, e-Shram Portal registration, and healthcare under PM Jan Arogya Yojana.
- Women Empowerment: Increased budget for Mudra Yojana and Beti Bachao, Beti Padhao.
9. Financial Sector Reforms
- FDI Cap Increase: Insurance sector limit raised from 74% to 100%.
- Jan Vishwas Bill 2.0: Decriminalization of 100+ business laws.
- Streamlined regulatory framework for startups.
10. Taxation and Customs Adjustments
- Customs Duty Relief: Exemptions for 36 lifesaving drugs.
- Digitization: Simplified tax compliance.
Conclusion
The Union Budget 2025-26 prioritizes inclusive growth, tax relief, infrastructure, and digital advancements. With reforms across various sectors, it sets a roadmap for a self-reliant and globally competitive India, making it a progressive and growth-oriented budget.
