Finance Minister Nirmala Sitharaman presented the Union Budget 2025-26 today, focusing on enhancing middle-class spending power, promoting inclusive development, and encouraging private investment to stimulate economic growth.
Key Highlights:
Fiscal Deficit Reduction:
The fiscal deficit is projected to reduce to 4.4% of GDP in 2025-26, compared to 4.8% in the current financial year.
Tax Reforms:
The personal income tax exemption limit has been raised to ₹12 lakh, aiming to increase disposable income for the middle class.
- Basic customs duties have been reduced on select marine products and critical minerals, and 36 life-saving drugs have been exempted from customs duties.
Foreign Direct Investment (FDI):
The FDI limit in the insurance sector has been increased from 74% to 100%, intending to attract more foreign capital.
Agriculture Initiatives:
A six-year mission to boost pulses production and a five-year mission for cotton cultivation have been launched to enhance agricultural output.
- The Kisan Credit Card limit has been increased to ₹5 lakh from the previous ₹3 lakh to facilitate greater credit access for farmers.
Manufacturing and Start-ups:
The National Manufacturing Mission has been established to support the ‘Make in India’ initiative, providing policy assistance to the manufacturing sector.
A ₹10,000 crore fund of funds has been set up to support start-ups, with the government contributing ₹100 billion.
Infrastructure Development:
An allocation of ₹1.5 trillion in 50-year interest-free loans to states has been made for infrastructure projects.
- The Maritime Development Fund has been introduced with a corpus of ₹250 billion to enhance maritime infrastructure.
Social Welfare:
A social security scheme for 1 crore gig workers has been announced, recognizing their contribution to the new-age services economy.
These initiatives demonstrate the government’s dedication to driving economic growth, supporting diverse sectors, and offering relief to various sections of society
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