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Union Budget 2025-26: Key Highlights & Analysis
The Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, presented the much-anticipated Union Budget 2025-26 in Parliament today. This budget lays down a roadmap for economic growth, with a strong focus on agriculture, MSMEs, infrastructure, and investment. Here are the key highlights of the budget:
Budget Estimates 2025-26
Total receipts (excluding borrowings): ₹34.96 lakh crore
Total expenditure: ₹50.65 lakh crore
Net tax receipts: ₹28.37 lakh crore
Fiscal deficit: 4% of GDP
Gross market borrowings: ₹14.82 lakh crore
Capital expenditure: ₹11.21 lakh crore (3.1% of GDP)
1st Engine of Development: Agriculture
PM Dhan-Dhaanya Krishi Yojana: A development initiative for 100 agricultural districts, impacting 1.7 crore farmers.
Aatmanirbharta in Pulses: A six-year mission to enhance the production of pulses like Tur, Urad, and Masoor.
National Mission on High Yielding Seeds: Focus on developing and commercializing 100+ high-yielding seed varieties.
Makhana Board in Bihar: To improve processing, marketing, and value addition of
Enhanced Credit via KCC: Loan limit increased from ₹3 lakh to ₹5
Mission for Cotton Productivity: A five-year mission to enhance cotton farming
2nd Engine of Development: MSMEs
Revised MSME Classification: Investment and turnover limits increased by 5x and 2x, respectively.
Customized Credit Cards: ₹5 lakh credit limit for micro-enterprises via Udyam
Fund of Funds for Startups: A fresh contribution of ₹10,000
First-time Entrepreneurs Scheme: ₹2 crore term loans for 5 lakh SC, ST, and women entrepreneurs.
Focus Product Scheme for Footwear & Leather: Aims for 22 lakh jobs and ₹4 lakh crore turnover.
3rd Engine of Development: Investment
Atal Tinkering Labs: 50,000 labs in government schools over the next five
Broadband for Rural Schools & PHCs: Connectivity under BharatNet
Expansion of IITs & Medical Colleges: 6,500 more seats in IITs and 10,000 additional medical seats.
Nuclear Energy Mission: Development of Small Modular Reactors (SMRs) with
4th Engine of Development: Exports
Export Promotion Mission: Sectoral and ministerial targets to be
BharatTradeNet: A unified platform for trade documentation and
National Framework for Global Capability Centres: Boosting emerging Tier-2 city economies.
Tax Reforms and Direct Taxation
- No tax on income up to ₹12 lakh (₹12.75 lakh for salaried individuals due to standard deduction).
· Revised tax slabs:
- ₹0-4 lakh: Nil
- ₹4-8 lakh: 5%
- ₹8-12 lakh: 10%
- ₹12-16 lakh: 15%
- ₹16-20 lakh: 20%
- ₹20-24 lakh: 25%
- Above ₹24 lakh: 30%
· TDS/TCS Rationalization:
- Senior citizens’ interest income exemption raised to ₹1 lakh.
- TDS on rent threshold increased from ₹2.4 lakh to ₹6
- TCS on remittances threshold increased from ₹7 lakh to ₹10
Conclusion
This budget presents a strategic vision for India’s economic transformation, balancing fiscal discipline with robust growth initiatives. By strengthening the agriculture sector, empowering MSMEs, boosting investments, and reforming taxation, the government aims to drive sustainable development and prosperity.
Stay tuned for more in-depth analysis and expert insights from PGA & Co.
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