Finance Minister Nirmala Sitharaman presented India's Union Budget for the fiscal year 2025-26 on February 1, 2025. The budget focuses on enhancing the spending power of the middle class, promoting inclusive development, and encouraging private investment to foster economic growth.
Key Highlights:
1. Taxation:
Personal Income Tax: The nil personal income tax slab has been increased to ₹1.2 million, meaning individuals earning up to ₹12 lakh annually will not be liable to pay income tax.
Customs Duties: Reductions in customs duties on marine products and critical minerals; life-saving drugs have been exempted from customs duties.
2. Fiscal Measures:
Fiscal Deficit: The fiscal deficit target has been set at 4.4% of GDP, a reduction from the previous year's 4.8%.
Borrowings: Gross borrowings are projected at ₹14.82 trillion, with net borrowings at ₹11.54 trillion.
3. Agriculture and Rural Development:
PM Dhan Dhyan Krishi Yojana: A new scheme covering 100 districts with low yields, focusing on modern crop intensity and improving credit parameters.
Rural Prosperity and Resilience Programme: A six-year initiative targeting youth, women, and farmers to enhance rural development.
4. Infrastructure and Capital Expenditure:
Capital Expenditure: The revised capital expenditure for FY25 is set at ₹10.18 lakh crore, indicating a significant investment in infrastructure projects.
5. Financial Sector Reforms:
Foreign Direct Investment (FDI): The FDI limit in the insurance sector has been raised to 100% to deepen market penetration.
Reforms in Six Key Areas: The budget initiates transformative reforms in taxation, urban development, mining, financial sector, power, and regulatory frameworks.
6. Social Welfare:
Inclusive Development: The budget includes measures to support the poor, youth, farmers, and women, aiming for inclusive growth across various sectors.
These initiatives reflect the government's commitment to strengthening the economy, supporting the middle class, and promoting sustainable development across various sectors.
Key Highlights:
1. Taxation:
Personal Income Tax: The nil personal income tax slab has been increased to ₹1.2 million, meaning individuals earning up to ₹12 lakh annually will not be liable to pay income tax.
Customs Duties: Reductions in customs duties on marine products and critical minerals; life-saving drugs have been exempted from customs duties.
2. Fiscal Measures:
Fiscal Deficit: The fiscal deficit target has been set at 4.4% of GDP, a reduction from the previous year's 4.8%.
Borrowings: Gross borrowings are projected at ₹14.82 trillion, with net borrowings at ₹11.54 trillion.
3. Agriculture and Rural Development:
PM Dhan Dhyan Krishi Yojana: A new scheme covering 100 districts with low yields, focusing on modern crop intensity and improving credit parameters.
Rural Prosperity and Resilience Programme: A six-year initiative targeting youth, women, and farmers to enhance rural development.
4. Infrastructure and Capital Expenditure:
Capital Expenditure: The revised capital expenditure for FY25 is set at ₹10.18 lakh crore, indicating a significant investment in infrastructure projects.
5. Financial Sector Reforms:
Foreign Direct Investment (FDI): The FDI limit in the insurance sector has been raised to 100% to deepen market penetration.
Reforms in Six Key Areas: The budget initiates transformative reforms in taxation, urban development, mining, financial sector, power, and regulatory frameworks.
6. Social Welfare:
Inclusive Development: The budget includes measures to support the poor, youth, farmers, and women, aiming for inclusive growth across various sectors.
These initiatives reflect the government's commitment to strengthening the economy, supporting the middle class, and promoting sustainable development across various sectors.
