The Union Budget for 2025-26, presented by Finance Minister Nirmala Sitharaman, introduces several key initiatives aimed at stimulating economic growth, supporting the middle class, and promoting inclusive development. Here are the major highlights:
- Income Tax Relief: The budget proposes significant personal tax cuts to boost domestic demand.
- Tax Deduction at Source (TDS) Rationalization: The budget rationalizes TDS by reducing the number of rates and thresholds above which TDS is deducted.
Agriculture and Rural Development:
- Prime Minister Dhan-Dhaanya Krishi Yojana: A new initiative targeting 100 districts to benefit approximately 17 million farmers.
- Enhanced Credit through Kisan Credit Card (KCC): The budget facilitates short-term loans for 77 million farmers, fishermen, and dairy farmers, with an enhanced loan limit of ?5 lakh.
- Self-Reliance in Pulses: A six-year mission focusing on pulses like Tur, Urad, and Masoor to boost domestic production.
Science, Technology, and Innovation:
- Research, Development & Innovation Initiative: An allocation of ?20,000 crore to implement a private sector-driven research and innovation program.
- PM Research Fellowship: Provision of 10,000 fellowships for technological research in premier institutions like IITs and IISc.
- Gene Bank for Crop Germplasm: Establishment of a second gene bank with 1 million germplasm lines to ensure future food and nutritional security.
Export Promotion and Trade Facilitation:
- Incentives for Electronics and Electric Vehicles (EVs): Exemptions for components like open cells for LED/LCD TVs and capital goods for lithium-ion batteries used in mobile phones and EVs.
- Promotion of Maintenance, Repair, and Overhaul (MRO): A 10-year exemption on goods for shipbuilding and shipbreaking, along with an extension of the time limit for exporting railway goods imported for repairs.
- Trade Facilitation Measures: Introduction of time limits for finalizing provisional assessments, provisions for voluntary declaration of material facts post-clearance with duty payment and interest but without penalty, and amendments to IGCR Rules to extend time limits and simplify compliance.
Infrastructure and Urban Development:
- Urban Challenge Fund: Establishment of a ?1 lakh crore fund to finance up to 25% of bankable urban development projects, with an initial allocation of ?10,000 crore.
- Fiscal Deficit Target: The government aims to reduce the fiscal deficit to 4.4% of GDP in the 2025-26 fiscal year.
These measures reflect the government's commitment to fostering economic growth, enhancing the welfare of the middle class, and promoting sustainable development across various sectors.
