India’s Finance Minister Nirmala Sitharaman delivered the Union Budget 2025-26 in the Parliament on Saturday, outlining the measures and schemes for the Indian economy.
The budget outlined 4 engines of development that will be in focus with reforms as the fuel, inclusivity as the guiding spirit and Viksit Bharat as the destination. Emphasising that the country is made up of its people and not just its soil.
This budget aspires to accelerate growth, secure inclusive development, enhance the spending power of the country’s rising middle class, rejuvenate private sector investments and uplift household sentiments.
When detailing the development measures for the garib, youth, annadata, and nari, the government has outlined several plans.
In an attempt to give a boost to the agricultural sector and to build rural prosperity, focus will remain on:
With an aim to support MSMEs and the Make In India campaign, the following measures will be implemented:
The government has come up with several plans to support education, skilling, and economic development of students. Welfare of online platform workers will also be supported through the e-Shram portal and receive healthcare benefits. The tourism sector is slated to see a boost as well.
On the economic side, the centre will provide funds for the following:
The government plans to support its people, economy and innovation through the PM Research Fellowship, Gene bank for crop germplasm, Gyan Bharatam Mission, and the National Geospatial Mission.
Exports will be promoted through:
The Finance Minister unveiled significant financial reforms in Union Budget 2025-26, introducing measures to strengthen credit access, enhance insurance sector participation, and streamline business processes.
Additionally, a new Income Tax Bill will be introduced, proposing changes in direct taxes. A high level committee for regulatory reforms will be formed as well. More than 100 provisions in various laws will be decriminalised.
Customs tariff structure for industrial goods will be rationalized in addition to the below sector specific proposals:
The Union Budget updated the tax slabs with an intention to ease the burden on the middle class and leave more disposable income in their hands. This is expected to promote savings, investment and spending on consumption, which will in turn boost the country’s economy.
The revised tax slabs are:
However, this excludes special rate income such as capital gains.
Furthermore, the tax deduction limit for senior citizens has been doubled from ₹50,000 to ₹1 lakh and the annual limit of ₹2.40 lakh for TDS on rent increased to ₹6 lakh.
The government wishes to encourage voluntary compliance and has thus extended the time-limit to file updated returns from 2 years to 4 years.
The Finance Minister, in the Union Budget 2025, announced that total receipts other than borrowings and the total expenditure are estimated at ₹34.96 lakh crore and ₹50.65 lakh crore respectively. The net tax receipts are estimated at ₹28.37 lakh crore. The fiscal deficit for 2025-26 is estimated to be 4.4% of the GDP.
“To finance the fiscal deficit, the net market borrowings from dated securities are estimated at ₹11.54 lakh crore. The remaining financing is expected to come from small savings and other sources. The gross market borrowings are estimated at ₹14.82 lakh crore,” said the Finance Minister Nirmala Sitharaman in her speech.
The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, unveiled comprehensive reforms across sectors with four key development engines and Viksit Bharat as the destination. The budget introduced significant measures including agricultural initiatives, support for MSMEs, financial sector reforms, and a simplified tax structure with revised slabs ranging from nil to 30%.
Notable announcements included export promotion, infrastructure development funds, and support for rural areas. The fiscal deficit is targeted at 4.4% of GDP, with total expenditure estimated at ₹50.65 lakh crore and net tax receipts at ₹28.37 lakh crore.
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