UNION BUDGET 2025-26:SUMMARY

Union Budget 2025
Source-https://pib.gov.in/
No Income Tax on Monthly Income up to Rs 1 Lakh; Major Boost for Middle-Class Savings & Consumption
The Union Budget has provided significant relief to the salaried class, exempting income tax on an annual income of up to Rs 12.75 lakh under the new tax regime. This move is expected to enhance household savings and boost consumer spending.
Economic and Developmental Announcements
Four Engines of Growth Identified: Agriculture, MSMEs, Investment, and Exports have been recognized as key drivers of economic development.
Support for Farmers:
- The ‘Prime Minister Dhan-Dhaanya Krishi Yojana’ will cover 100 districts with low agricultural productivity, benefiting 1.7 crore farmers.
- The ‘Mission for Aatmanirbharta in Pulses’ will focus on boosting Tur, Urad, and Masoor production.
- Loans up to Rs 5 lakh will be provided through Kisan Credit Cards (KCC) under the modified interest subvention scheme.
Fiscal Deficit Reduction Target: FY-25 is expected to close with a fiscal deficit of 4.8%, with a goal of reducing it to 4.4% in FY-26.
MSME Support: Credit guarantees for MSMEs will be enhanced from Rs 5 crore to Rs 10 crore.
Make in India Initiative: A National Manufacturing Mission will be launched, covering small, medium, and large industries.
Education & Innovation:
- 50,000 Atal Tinkering Labs will be established in government schools over the next five years.
- A Centre of Excellence in Artificial Intelligence for education will be set up with an outlay of Rs 500 crore
Urban Development & Infrastructure
- A Rs 1 lakh crore Urban Challenge Fund will be introduced to position cities as growth hubs.
- The Modified UDAN Scheme will enhance regional air connectivity, covering 120 new destinations.
- Rs 15,000 crore will be allocated for the SWAMIH Fund to complete 1 lakh stressed housing units.
- Rs 20,000 crore will be allocated for private sector-driven research, development, and innovation initiatives.
Welfare & Financial Inclusion
- PM SVANIDHI scheme will offer enhanced bank loans and introduce UPI-linked credit cards with a Rs 30,000 limit.
- Gig workers will receive identity cards, registration on the e-Shram portal, and healthcare under PM Jan Arogya Yojana.
- The Gyan Bharatam Mission will survey and conserve over one crore manuscripts.
Insurance & Legal Reforms
- The FDI limit in insurance will be raised from 74% to 100%.
- The Jan Vishwas Bill 2.0 will decriminalize over 100 provisions across various laws.
Tax Reforms & Relief
- The time limit for updating income tax returns will be increased from two to four years.
- Delays in TCS payments will be decriminalized.
- TDS on rent will increase from Rs 2.4 lakh to Rs 6 lakh.
Customs Duty Revisions
- Basic Customs Duty (BCD) on 36 life-saving drugs, including those for cancer and rare diseases, will be exempted.
- BCD on IFPD increased to 20%, while BCD on open cells is reduced to 5% to boost domestic electronics manufacturing.
- To encourage battery production, capital goods for EV and mobile battery manufacturing will be exempted.
- Shipbuilding components will receive a 10-year BCD exemption.
- BCD on frozen fish paste and fish hydrolysate has been reduced to 5%.
These comprehensive measures aim to boost economic growth, support key industries, and enhance financial inclusion, positioning India for sustained development in the coming years.