The Union Budget for 2025-26, presented in February 2025, outlines a comprehensive strategy for India's development, focusing on inclusive growth and a secure future. The budget's core theme revolves around "Viksit Bharat" (Developed India), with a strong emphasis on empowering the "Garib" (Poor), "Yuva" (Youth), "Annadata" (Farmers), and "Nari" (Women). This article delves into the key features and highlights of this crucial financial blueprint.
The 2025-26 Union Budget focuses on four key engines of development: Agriculture, MSMEs, Investment, and Exports, supported by financial sector reforms.
- 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
- Capex Expenditure: ?11.21 lakh crore (3.1% of GDP)
- Prime Minister Dhan-Dhaanya Krishi Yojana: A new program in partnership with states will target 100 districts with low productivity, benefiting 1.7 crore farmers.
- Building Rural Prosperity and Resilience:?A multi-sectoral program will address under-employment in agriculture through skilling, investment, and technology.
- Aatmanirbharta in Pulses: A 6-year mission will focus on Tur, Urad, and Masoor, with NAFED and NCCF procuring pulses from farmers.
- Comprehensive Programme for Vegetables & Fruits:?A new program will promote production, efficient supplies, processing, and remunerative prices.
- Makhana Board in Bihar: A board will be established to support the makhana industry.
- National Mission on High Yielding Seeds: This mission aims to strengthen research and develop high-yield seed varieties.
- Fisheries: A framework for sustainable fisheries will be developed, focusing on Andaman & Nicobar and Lakshadweep Islands.
- Mission for Cotton Productivity: A 5-year mission will improve cotton farming productivity and promote extra-long staple varieties.
- Enhanced Credit through KCC: The loan limit under the Modified Interest Subvention Scheme will be increased from ?3 lakh to ?5 lakh.
- Urea Plant in Assam:?A new plant with a 12.7 lakh metric ton annual capacity will be set up in Namrup.
- Revised MSME Classification: Investment and turnover limits will be increased.
- Credit Cards for Micro Enterprises: Customized credit cards with a ?5 lakh limit will be issued to micro enterprises registered on the Udyam portal.
- Fund of Funds for Startups: A new Fund of Funds with ?10,000 crore will be established.
- Scheme for First-time Entrepreneurs:?A new scheme will provide term loans up to ?2 crore for 5 lakh women, SC, and ST entrepreneurs.
- Focus Product Scheme for Footwear & Leather Sectors: This scheme aims to boost productivity and competitiveness.
- Measures for the Toy Sector: A scheme will be launched to make India a global toy hub.
- Support for Food Processing: A National Institute of Food Technology, Entrepreneurship and Management will be set up in Bihar.
- Manufacturing Mission: A National Manufacturing Mission will further "Make in India."
- Increased cost norms for nutritional support under Saksham Anganwadi and Poshan 2.0.
- 50,000 Atal Tinkering Labs to be set up.
- Broadband connectivity to all government secondary schools and PHCs.
- Bharatiya Bhasha Pustak Scheme for digital Indian language books.
- 5 National Centres of Excellence for skilling.
- Expansion of IIT capacity.
- Centre of Excellence in AI for Education.
- Expansion of medical education (10,000 additional seats).
- Day Care Cancer Centres in all district hospitals.
- Scheme for urban worker upliftment.
- Revamped PM SVANidhi scheme.
- Social security scheme for online platform workers.
Investing in the Economy:
- Public Private Partnership in Infrastructure: 3-year pipeline of projects.
- ?1.5 lakh crore for interest-free loans to states for capital expenditure.
- Asset Monetization Plan 2025-30 (?10 lakh crore target).
- Jal Jeevan Mission extended to 2028.
- ?1 lakh crore Urban Challenge Fund.
- Nuclear Energy Mission for Viksit Bharat (including SMRs).
- Revamped Shipbuilding Financial Assistance Policy.
- Maritime Development Fund (?25,000 crore).
- Modified UDAN scheme.
- Greenfield airports in Bihar.
- Support for Western Koshi Canal Project.
- Mining sector reforms.
- SWAMIH Fund 2 (?15,000 crore).
- Development of top 50 tourist destinations.
- ?20,000 crore for private sector-driven R&D.
- Deep Tech Fund of Funds.
- PM Research Fellowship (10,000 fellowships).
- 2nd Gene Bank for Crops Germplasm.
- National Geospatial Mission.
- Gyan Bharatam Mission for manuscript heritage.
Export Promotion Mission:?Sectoral and ministerial targets.
BharatTradeNet: Unified platform for trade.
National Framework for GCCs: Guidance for states.
- FDI in Insurance: Increased to 100% (with conditions).
- NaBFID Credit Enhancement Facility.
- Grameen Credit Score framework.
- Pension sector forum.
- High-Level Committee for Regulatory Reforms.
- Investment Friendliness Index of States.
- Jan Vishwas Bill 2.0.
Part B: Direct and Indirect Taxes
- No personal income tax up to ?12 lakh income (?12.75 lakh for salaried individuals).
- Revised tax rate structure in the new regime.
- TDS/TCS rationalization.
- Reduced compliance burden for charitable trusts.
- Benefit of nil annual value extended to two self-occupied properties.
- Ease of Doing Business measures.
- Tax certainty for electronics manufacturing.
- Tonnage Tax Scheme for Inland Vessels.
- Extension for start-up incorporation.
- Certainty of taxation for AIFs.
- Extension of investment date for Sovereign and Pension Funds.
- Rationalization of Customs Tariff Structure.
- Relief on import of drugs/medicines.
- Support to domestic manufacturing and value addition (critical minerals, textiles, electronics, lithium-ion batteries, shipping, telecommunications).
- Export promotion measures (handicrafts, leather, marine products).
- Domestic MROs for railway goods.
- Trade facilitation measures (provisional assessment, voluntary compliance, extended time for end-use).
The Union Budget 2025-26 presents a comprehensive and forward-looking vision for India's development. With its focus on inclusive growth, infrastructure development, innovation, and fiscal prudence, the budget aims to pave the way for a "Viksit Bharat," empowering its citizens and securing a prosperous future for the nation. The budget's success will depend on effective implementation and collaboration between various stakeholders.
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