Union Budget 2025-26: Key Highlights and Analysis
The Union Budget for 2025-26 was presented by Finance Minister Nirmala Sitharaman on February 1, 2025. This budget focused on economic growth, infrastructure, agriculture, taxation, and fiscal consolidation.
1️⃣ Introduction to Union Budget 2025-26
The Union Budget outlines the Indian government’s income and expenditure for the financial year 2025-26.
This budget is significant as it comes before the upcoming general elections and aims to balance economic growth with fiscal discipline.
2️⃣ Major Announcements in Budget 2025
📌 Income Tax Changes
1. Increase in Tax Exemption Limit:
- The exemption threshold under the new tax regime has been increased from ₹8 lakh to ₹12 lakh.
- This is aimed at increasing disposable income for the middle class.
2.No Changes in Tax Slabs for Higher Incomes:
- Individuals earning above ₹12 lakh will continue with existing tax slabs.
📌 Agriculture and Rural Development.
1.National Mission for High-Yield Crops:
- A six-year initiative to boost the production of pulses and cotton.
- This move aims to reduce India’s reliance on agricultural imports.
2.Investment in Irrigation and Storage:
- Increased funding for modernizing irrigation systems.
- Expansion of cold storage and warehousing infrastructure.
📌 Infrastructure & Capital Expenditure
1.Capex Increased to ₹11.21 Lakh Crore:
- Higher spending on roads, railways, and urban development.
- Focus on smart cities and new airports.
2.Boost for Private Sector Investments:
- Incentives for companies to invest in infrastructure.
📌 Fiscal Deficit Reduction
- The fiscal deficit is targeted at 4.4% of GDP, down from 5.8% in 2024.
- This aligns with the government’s roadmap for fiscal discipline.
📌 MSMEs & Startups Support
1.Increased Credit Support:
- Special credit schemes to help Micro, Small, and Medium Enterprises (MSMEs).
2.Tax Benefits for Startups:
- Extension of tax exemptions for startups for three more years.
📌 Energy & Sustainability
1.Launch of Nuclear Energy Mission:
- Target of 100 GW nuclear power by 2047.
- Focus on clean energy transition.
2.Incentives for Electric Vehicles (EVs):
- Subsidies for EV manufacturers and buyers.
4️⃣ Conclusion
The Union Budget 2025-26 focuses on economic growth, infrastructure, and sustainability while ensuring fiscal discipline. The increase in tax exemption limits is a welcome move for the middle class, while higher capital expenditure will drive long-term growth. However, the challenge remains in managing inflation and global economic risks.
➡️ Do you think this budget will help India achieve its growth targets? Share your thoughts in the comments!