Finance Minister Nirmala Sitharaman presented budget for 2025 in parliament. In budget government focus on theme of “Viksit Bharat” to stimulate balanced growth in all regions. The key major factors in which government focus are Annadata, Garib, Youth and Nari. To achieve its target government prioritize increasing agriculture growth & productivity, Supporting MSMEs, Boosting manufacturing through “Make in India”, Enable employment led development in country, Promoting exports and investing in innovation. Key domain area in which budget is focused is Regulatory reforms, Mining, Taxation, Power sector, Urban development and Financial sector. Following are the highlights of the union budgets 2025.

Highlights of Union Budget 2025

Agriculture

In agriculture sector government focus in Developing Agri District Programme under Prime Minister Dhan-Dhaanya Krishi Yojna in partnership with states government. Under this scheme government will cover 100 districts that have low productivity and its aims to improve irrigation facilities, enhanced agriculture productivity and adopt diversify and sustainable agriculture facilities.

A multi sector “Rural Prosperity and Resilience” program will launch by government to support rural youth, women, and farmer and land less families and are in annexure A. For the “Mission of Aatmanirbharta in Pulses” government will launch 6 year program which focus on Tur, Urad and Masoor pulses and central agency will procure as much offer by farmers who register with these agencies into agreements and it is in annexure B. Indian post office payment bank will complement India post with 1.5 lakh rural post office and reposition for rural economy in annexure C.

To boost the economic growth and development in eastern region government will set up three urea dormant plant with annual capacity of 12.7 lakh in Namurp, Assam. Government increases the limits of Kisan Credit Card (KCC) for short term loan from 3 to 5 lakh to improve the growth of agriculture sector. For improving potential of fishing and aquaculture government will introduce sustainable harnessing of fisheries in India Exclusive Economic Zone with a major focus on Andaman & Nicobar and Lakshadweep Islands. To support regional specific production government will established Makhana Board in Bihar and this board will provide handholding and training help to Makhana farmer.

MSMEs

In india more than 1 crore MSMEs is registered who give employment of 7.5 crore people and contribute 36% of manufacturing in economy. MSMEs is responsible in 45% exports of goods and to improve this number government increase credit access from 5 to 10 crore for medium and small enterprises and 10 to 20 crore for startups and term loan up to 20 crore for exporter MSMEs. Government will launch customized credit card for micro enterprises who are registerd on udyam portal for limit with 5 lakh.

Women

For women welfare government launched scheme in which women come from Scheduled and Tribes, government provide them term loan up to 2 crores who are first time entrepreneurs. This scheme will launched for 5 lakh women in which they learn building of entrepreneurship and managerial skills.

Education

To promote education growth in country additional infrastructure will created in 5 IITs to facilitate students, in this IIT Patna infrastructure will expanded. To improve AI education in country government announced three centres of excellence in artificial intelligence in health, agriculture and sustainable  cities in 2023, Now government announce centre of excellence will be set up of 500crore along with it expansion of medical education in next year of adding 10,000 seats in medical colleges and hospitals.

Urban

Government will make Urban Challenge Fund of 1 lakh crore to make cities more creative, better water and sanitation facility as well as making them growth hubs & redevelopment of cities. Finance Minister said that this Urban Challenge Fund will finance upto 25% of the cost of bankable projects and its half cost is come from bonds, bank loans and public-Private Partnership which allocation is 10,000 crore made for 2025-26.

Infrastructure

In infrastructure an outlay of 1.5 lakh crore is set to offer 50 year interst free loan to states for expansion in state capital expenditure & reforms in incentives. Government come with 3 year pipeline project in the PPP (Public-Private Partnership) mode and in this states can take support from IIPDF (India Infrastructure Project Development Fund). Under the Assets Monetization Plan of 2025-30 government will launched capital of 10 lakh crore in new projects.

Udaan (Regional Connectivity Scheme)

To promote regional connectivity in country government was launched UDAAN Scheme which provide 1.5 crore middle-class people fast travel. Under this scheme government will connect 88 airports and 619 opertionalized routes in country. In their new scheme government plan to improve connectivity to 120 new destinations and carry 4 crore passengersin next 10 years and this scheme also support smaller airports and helipad in NorthEast area of country. Along with it in Bihar government will added Greenfield airports to meet demands.

Nuclear Energy

In nuclear energy government plan to develop 100 GW of nuclear energy by 2047 in country for our energy transition. Government made amendments in the atomic energy act and civil liability for nuclear damage act to engage with active private partnership. Now government will set up a nuclear energy mission for research and development of small module reactors (SMR) with budget of 20,000 crore and target to operate at least 5 indigenously developed SMR by 2033.

Tourism to Led Employment

To promote tourism in country and employment, government pick 50 tourist destination sites in country which will develop of partnership with states. In this schemes land for building infrastructure will provide by states government for development of these sites. In this scheme to promote employment some steps will taken by government which include providing MUDRA loan for homestays, introducing streamlined e-visa facility with free visa for tourists group and improving ease of travel & connectivity to tourist destinations.

Government Revenue and Expenditure Estimates

In the upcoming year 2025-26 total receipts other than borrowing & total expenditure are estimates at 34.96 lakh crores and 50.65lakh crores. To finance the fiscal deficit net market borrowing which is estimated by government is 11.54 lakh cores and 28.37 lakh crores is net tax receipts is estimated by government. Finance Minister said gross market borrowings are estimated at 14.82 lakh crores.

Indirect Tax

Finance Minister introduces rational and trader supportive indirect tax which will promote trade, exports and give value addition in domestic manufacturing. In medical sector government fully exempted 36 lifesaving drugs and medicine which will exempted from basic custom duty. This relief adds on medicine which is used in rare disease and other chronic diseases. Government also gives exemption in mineral sectors on cobalt powder, scrap of lithium-ion battery, lead, zinc and 12 other critical mineral which will helpful for MSMEs manufacturing.

In textile industry government add two more shuttle-less looms for fully exempted textile machinery.

In electronic goods government announced to increase BCD on Flat Panel Display (IFPD) from 10% to 20% and reduce BCD 5% on open cell and other components. For telecommunication government reduced BCD from 20% to 10%. In Leather goods which is wet Blue Leather import by country is fully exempted to promote domestic value addition of goods and also exempt crust leather from 20% export duty.

Direct Tax

Major change announced by Finance Minister in the direct tax regime, according to the new direct tax rules tax limits for senior citizens in tax deduction is doubled by government from 50,000 to 1 lakh and annual limit for TDS on rent is increased to 6 lakh from 2.40 lakh. This will definitely benefits receiving of small tax payers.

In budget government also remove the TCS in which remittance is taken out of loan from specific financial institution for educational reason. Burden on small charitable trusts is removed by government by increasing their registration period from 5 to 10 years.

Government give big announcement in which there is no income tax payable by person up to income of 12 lakh in this special rate income like capital gains tax and FD interest income is excluded. Under this new tax regime total income which is exempted is 12.75 lakh, due to standard deduction of 75,000. In this new regime of tax there is no tax from 0-4 lakh income, 5% tax on 400001-800000 lakh income, 10% tax on 800001-1200000 lakh income, 15% tax on 1200001-1600000 lakh income, 20% tax on 1600001-2000000 lakh income, 25% tax on 2000001-2400000 lakh income and 30% tax on above of 2400000 lakh income. People have choice they can also follow old regime of tax.

New tax regime 2025-26

Old tax regime 2024-25