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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.
Part A: Key Focus Areas
The 2025-26 Union Budget focuses on four key engines of development: Agriculture, MSMEs, Investment, and Exports, supported by financial sector reforms.
Budget Estimates:
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)
1. Agriculture:
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.
2. MSMEs:
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."
3. Investment:
Investing in People:
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.
Investing in Innovation:
₹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.
4. Exports:
Export Promotion Mission: Sectoral and ministerial targets.
BharatTradeNet: Unified platform for trade.
National Framework for GCCs: Guidance for states.
Reforms as Fuel:
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
Direct Tax:
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.
Indirect Tax:
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).
Conclusion
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.
Source Referred- https://pib.gov.in/PressReleasePage.aspx?PRID=2098353
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