Union Budget 2025-26: Key Highlights, Reforms & Fiscal Trends

on

Union Budget 2025-26



The government unveiled the Union Budget 2025-26 in February 2025 to provide a guideline for economic expansion alongside social care improvements and infrastructure development and fiscal consolidation goals. The government's budget targets "Viksit Bharat" (Developed India) through growth enhancement measures that protect inclusivity goals.


Key Focus Areas

  • Agricultural Growth & Rural Prosperity
  • Boosting MSMEs & Manufacturing
  • Innovation & Research Development
  • Infrastructure & Urban Development
  • Tax Reforms & Financial Sector Strengthening
  • Social Welfare & Human Resource Development

1. Fiscal Trends & Budgetary Allocations

The budget increases spending at a higher level than before while maintaining strong fiscal controls. Below are key financial indicators.

Government Receipts & Expenditures (₹ lakh crore)





The illustrated budget distribution shows sustained growth in revenue collection as well as expenditure and only minimal changes in capital spending.

2. Sector-Wise Expenditure Allocation
Defense together with education and rural development and healthcare represent the core sectors where the government has assigned priority status.





The 2025-26 Budget provides its biggest financial support to Defence services alongside Education departments and Rural Development initiatives.

3. Fiscal Deficit & Revenue Trends

The budget seeks to decrease the fiscal deficit through higher revenue generation.




Fiscal deficit across the years has shown an ongoing decline in accordance with better fiscal discipline that sustains economic growth.

4. Taxation & Financial Sector Reforms
The Budget 2025-26 includes various tax benefits which specifically focus on delivering advantages to both middle-class citizens and business entities.

Personal Income Tax Slabs (New Regime)




Key Tax Reforms

  • Higher TDS limit on rent: Increased from ₹2.4 lakh to ₹6 lakh.
  • Senior Citizens Tax Deduction Limit: Doubled from ₹50,000 to ₹1 lakh.
  • Updated Return Filing Window Extended: From 2 years to 4 years.

Corporate Tax & Business Incentives

  • FDI limit in Insurance raised from 74% to 100%.
  • Tax certainty for Startups & Electronics Manufacturing.
  • Customs Tariff Rationalization for industrial goods.

5. Infrastructure & Development Plans

Infrastructure development receives substantial government funding as part of recent official declarations:

Key Projects & Investments

  • Urban Challenge Fund: ₹1 lakh crore for city redevelopment.
  • Asset Monetization Plan: ₹10 lakh crore for new projects.
  • Power Sector Reforms: Additional borrowing incentives for states.
  • Maritime Development Fund: ₹25,000 crore to boost ports.
  • UDAN Scheme Expansion: 120 new air routes in 10 years.
  • Jal Jeevan Mission Extension: Full water coverage by 2028.

6. Social & Employment Initiatives

Employment creation along with human resource advancement constitutes top priorities for the government.

Key Employment & Social Welfare Measures

  • MSME Credit Cards: ₹5 lakh limit for micro-enterprises.
  • First-Time Entrepreneur Scheme: ₹2 crore loans for 5 lakh entrepreneurs.
  • PM SVANidhi: UPI-linked credit cards for street vendors.
  • Expansion of Medical Education: 10,000 new MBBS seats.
  • AI Centres of Excellence: ₹500 crore investment in AI education.
  • PM Research Fellowship: 10,000 fellowships in IITs & IISc.

Conclusion

The forthcoming Union Budget 2025-26 establishes its primary objective to promote economic growth together with employment creation and infrastructure development and social welfare initiatives. The budget focuses on austere financial decisions and specific capital allocations which establishes foundations for a unified and accepting India.

Comments

Post a Comment