Summary of Union Budget 2025-26

India's Union Budget for the fiscal year 2025-26, presented by Finance Minister Nirmala Sitharaman, introduces significant reforms aimed at stimulating economic growth, supporting key sectors, and providing relief to taxpayers. Here's a concise overview of the budget's key highlights:

Personal Income Tax Reforms

• Increased Tax Exemption Limit: Individuals earning up to ₹12 lakh annually are now exempt from paying income tax under the new tax regime. For salaried employees, the exemption limit is ₹12.75 lakh, considering a standard deduction of ₹75,000. 
• Revised Tax Brackets: The tax slabs have been restructured to benefit those earning between ₹12 lakh and ₹24 lakh per year, reducing the tax burden on the middle class.
  
  

Focus on Agriculture

• Prime Minister Dhan-Dhaanya Krishi Yojana: A new program targeting 100 districts with low productivity to benefit 1.7 crore farmers through enhanced support and resources. 
• Mission for Aatmanirbharta in Pulses: A six-year mission focusing on self-reliance in pulses like Tur, Urad, and Masoor, with procurement support from NAFED and NCCF. 
• Makhana Board in Bihar: Establishment of a dedicated board to improve production, processing, and marketing of makhana, benefiting local farmers.

Support for MSMEs and Startups

• Revised Classification Criteria: Enhancement of investment and turnover limits for MSME classification to 2.5 and 2 times respectively, facilitating growth and access to benefits. 
• Credit Cards for Micro Enterprises: Introduction of customized credit cards with a ₹5 lakh limit for micro enterprises registered on the Udyam portal, aiming to issue 10 lakh cards in the first year. 
• Fund of Funds for Startups: A new fund with a contribution of ₹10,000 crore to support startup growth and innovation.

Watch Our Managing Director Jairam Sridharan's Take on Budget 2025-26

Infrastructure and Investment

• Capital Expenditure: An allocation of ₹11.21 lakh crore (3.1% of GDP) for capital expenditure to boost infrastructure development across the country.
• Smart Cities and Urban Development: Renewed focus on the Smart Cities initiative to improve urban infrastructure and livability.
   

Fiscal Management

• Fiscal Deficit Target: The fiscal deficit is estimated at 4.4% of GDP, reflecting the government's commitment to fiscal prudence while supporting economic growth.

This budget underscores the government's dedication to fostering economic development, supporting key sectors like agriculture and MSMEs, and providing substantial tax relief to the middle class, thereby enhancing consumption and investment.