The Union Budget 2025-26 was framed around the theme “Sabka Vikas,” emphasizing balanced growth across all regions of India.
- The total receipts other than borrowings and the total expenditure are estimated at ?34.96 lakh crore and ?50.65 lakh crore respectively.
- The net tax receipts are estimated at ?28.37 lakh crore.
- The fiscal deficit is estimated to be 4.4% of GDP.
- The gross market borrowings are estimated at ?14.82 lakh crore.
- Capex Expenditure of ?11.21 lakh crore (3.1% of GDP) earmarked in FY 2025-26.
Journey of Development
The journey of development has be defined for India as
- Agriculture
- MSME
- Investment
- Exports
The fuel, is the country's Reforms
The guiding spirit is Inclusivity, and
The destination is Viksit Bharat
The following are the Aspirations of Viksit Bharat
Personal Tax Changes
?? ZERO tax on income upto ?12 Lacs
With changes in tax slabs, there will be significant tax savings for other income slabs.
- A person having income of ?18 lakh will get a benefit of ?70,000 in tax.
- A person with an income of ?25 lakh gets a benefit of ?1,10,000
Note: The above is applicable only for the New Tax Regime
Key Engines of Growth
1st Engine: Agriculture
- PM Dhan-Dhaanya Krishi Yojana: Developing Agri District Programme to cover 100 districts.
- Aatmanirbharta in Pulses: Focus on Tur, Urad and Masoor with unlimited procurement support by central agencies (NAFED and NCCF).
- Enhanced Credit through Kisan Credit Cards (KCC): Limit raised from ?3 lakh to ?5 lakh.
- New Missions: Mission for Cotton Productivity, National Mission on High Yielding Seeds, Makhana Board in Bihar
2nd Engine: MSME
- Credit Cards for Micro Enterprises: A 5 lakh limit credit card for micro-enterprises registered on the Udyam portal.
- Funds of Funds for Startups: A new fund of funds with expanded scope and a fresh contribution of ? 10,000 crores.
- Make in India Push: National Manufacturing Mission & toy industry growth.
3rd Engine: Investment
- Saksham Anganwadi and Poshan 2.0.
- Atal Tinkering Labs: 50,000 labs will be set up in government schools in 5 years.
- Support to States for Infrastructure: With an outlay of ? 1.5 lakh crore, 50-year interest-free loans to states for capital expenditure and incentives for reforms.
- Jal Jeevan Mission: To achieve 100% coverage, the mission was extended until 2028.
- Asset Monetization Plan 2025-30: To plough back capital of ?10 lakh crore in new projects.
- PM Research Fellowship: To provide ten thousand fellowships for technological research in IITs and IISc.
- Research, Development & Innovation: Allocating ?20,000 crore to implement private sector-driven Research, Development and Innovation initiatives.
4th Engine: Exports
- National Framework for GCC: As guidance to states for promoting Global Capability Centres in emerging tier 2 cities.
- Warehousing facility for air cargo: To facilitate the upgrade of infrastructure and warehousing for air cargo, including high-value perishable horticulture produce.
Reforms as Fuel
Defining Reforms as the fuel to the engine the Finance Minister introduced following reforms:
Financial Sector Reforms and Development:
- 100% FDI limit for the insurance sector.
- Revamped Central KYC registry to be rolled out in 2025.
- Light-touch regulatory framework based on principles and trust to unleash productivity and employment
- TDS/TCS Rationalization: TDS limit on interest for senior citizens increased from ?50,000 to ?1 lakh.
- Customs Tariff Reforms: Removal of seven tariffs, simplification of cess, and reduction of Basic Customs Duty (BCD) on critical minerals and textiles.
