The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, emphasizes inclusive development under the theme “Sabka Vikas,” aiming for balanced growth across all regions. The budget identifies four key drivers of development: Agriculture, Micro, Small, and Medium Enterprises (MSMEs), Investment, and Exports.
Income Tax Reforms:
- Middle-Class Relief: To boost household savings and consumption, the budget proposes no income tax on annual incomes up to ₹12 lakh, effectively exempting individuals with an average monthly income of up to ₹1 lakh. For salaried individuals, the exemption extends up to ₹12.75 lakh per annum under the new tax regime.
Agriculture Initiatives:
- Prime Minister Dhan-Dhaanya Krishi Yojana: This scheme targets 100 districts with low agricultural productivity, aiming to benefit 1.7 crore farmers by enhancing productivity, promoting crop diversification, improving post-harvest storage, and facilitating better irrigation and credit access.
- Mission for Aatmanirbharta in Pulses: A new mission focusing on self-reliance in pulses, particularly Tur, Urad, and Masoor, will be launched to boost domestic production.
- Kisan Credit Card (KCC) Loans: The budget proposes providing loans up to ₹5 lakh through KCC under a modified interest subvention scheme to support farmers’ financial needs.
MSME Support:
- Enhanced Credit Guarantee: The credit guarantee cover for MSMEs will be significantly increased from ₹5 crore to ₹10 crore, facilitating greater access to credit for small and medium enterprises.
- National Manufacturing Mission: A comprehensive mission encompassing small, medium, and large industries will be launched to further the “Make in India” initiative, promoting domestic manufacturing and exports.
Education and Skill Development:
- Atal Tinkering Labs: The government plans to establish 50,000 Atal Tinkering Labs in government schools over the next five years to foster innovation and creativity among students.
- Centre of Excellence in Artificial Intelligence: A dedicated centre with an outlay of ₹500 crore will be set up to promote AI-driven education and research.
Urban Development:
- Urban Challenge Fund: A ₹1 lakh crore fund will be created to develop cities as growth hubs, focusing on infrastructure development, sustainable urbanization, and improved living standards.
Energy and Infrastructure:
- Nuclear Energy Mission: With an allocation of ₹20,000 crore, this mission aims to advance research and development of small modular reactors, contributing to sustainable energy solutions.
- UDAN Scheme Expansion: The regional connectivity scheme will be expanded to include 120 new destinations, enhancing air travel accessibility across the country.
Fiscal Management:
- Fiscal Deficit Reduction: The fiscal deficit for FY-25 is estimated at 4.8%, with a target to reduce it to 4.4% in FY-26, demonstrating the government’s commitment to fiscal consolidation.
The Union Budget 2025-26 reflects the government’s dedication to fostering inclusive growth, supporting key sectors, and implementing reforms to enhance India’s economic resilience and global competitiveness.
