General Knowledge Articles

Union Budget 2025 - 2026

February 12 , 2025 11 hrs 0 min 59 0

Union Budget 2025 - 2026

(இதன் தமிழ் வடிவத்திற்கு இங்கே சொடுக்கவும்)

Introduction

Record 8th Consecutive Budget: The finance minister Nirmala Sitharaman presented her eighth consecutive Union Budget on February 1, 2025.

Core Focus on Four Engines:
The budget aims to drive economic growth through four key sectors:
Agriculture
MSMEs (Micro, Small, and Medium Enterprises)
Investment
Exports

Goal of Viksit Bharat: The central vision of the budget is to transform India into a Viksit Bharat 2047 (Developed India 2047) by strengthening these key sectors.
Emphasis on Sustainable and Inclusive Growth: The budget is designed to promote sustainable, equitable growth, ensuring that the benefits reach every section of society.

Aspirations for Viksit Bharat
Accelerate Growth.
Secure Inclusive Development.
Enhance Spending Power of India’s Rising Middle Class.
Invigorate Private Sector Investments.

Agricultural Growth & Building Rural Prosperity
Prime Minister Dhan-Dhaanya Krishi Yojana
Developing Agri Districts Programme.
Focus on 100 districts, targeting 1.7 crore farmers.

Enhanced Credit through KCC (Kisan Credit Card)
Provide short-term loans to 7.7 crore farmers, fishermen, and dairy farmers with an enhanced loan amount of ₹5 lakh.

National Mission on High Yielding Seeds
Develop and propagate high-yield, pest-resistant, and climate-resilient seeds.
Mission for Cotton Productivity
5-year mission for cotton farming productivity and sustainability.
Makhana Board in Bihar
Establishment to improve production, processing, value addition, and marketing, along with the organisation of FPOs (Farmer Producer Organisations).

Aatmanirbharta in Pulses
Launch a 6-year mission focusing on Tur, Urad, and Masoor.
Focus on climate-resilient seeds, enhancing protein content, increasing productivity, and improving post-harvest storage.
India Post as a Catalyst for the Rural Economy
Rural Community Hub Co-location
Provide services such as DBT (Direct Benefit Transfer), cash out, and EMI pick-up.
Institutional Account Services
Credit Services to Micro Enterprises.
Insurance & Assisted Digital Services.
Micro-enterprise Management.
Assuring remunerative prices for farmers.
Development Measures for Key Groups
Garib (The Poor).
Youth.
Annadata (Farmers).
Nari (Women).

Supporting MSMEs & Furthering Make in India
Credit Cards for Micro Enterprises
Customised credit cards with ₹5 lakh limit for micro enterprises registered on the Udyam portal.
10 lakh cards to be issued in the first year.
Scheme for First-Time Entrepreneurs
New scheme for 5 lakh first-time entrepreneurs (including women, SCs, and STs).
Term loans of up to ₹2 crore during the next 5 years.
Manufacturing Mission for Labour-Intensive Sectors
Key Measures for Labour-Intensive Sectors
Focus on ease of doing business, future-ready workforce, technology availability, and clean-tech manufacturing for climate-friendly development.
Significant Enhancement of Credit Availability
Increased credit guarantee cover for MSMEs and startups.

Focus Product Scheme for Footwear & Leather Sectors
Expected to create 22 lakh jobs, generate ₹4 lakh crore turnover, and ₹1.1 lakh crore in exports.
Support for Food Processing
Establishment of the National Institute of Food Technology in Bihar.
Enhanced farmer income, skills, and entrepreneurship opportunities.
Credit Classification & Support for MSMEs
Revised Classification Criteria for MSMEs

Exporter MSMEs
Support for term loans up to ₹20 Crore.
Investing in People, Economy and Innovation
Saksham Anganwadi and Poshan 2.0
Expanding capacity and resources for Anganwadis and enhancing the Poshan 2.0 scheme.
Expansion of Capacity in IITs
Increasing capacity and resources to boost higher education and research in Indian Institutes of Technology (IITs).
Day Care Cancer Centres in District Hospitals
Establishment of cancer care centres in all district hospitals to improve healthcare access.

Bharatiya Bhasha Pustak Scheme
Provide digital Indian language books for school and higher education to promote linguistic diversity.
National Centres of Excellence for Skilling
Set up 5 National Centres of Excellence for skilling with global expertise and partnerships.
Atal Tinkering Labs
50,000 labs to be set up in government schools over the next 5 years to foster innovation and entrepreneurship.
Centre of Excellence in Artificial Intelligence (AI) for Education
A total outlay of ₹500 crore for AI-driven education initiatives.

Broadband Connectivity for Rural Areas
Broadband connectivity to be provided to all government secondary schools and primary health centres in rural regions.
Expansion of Medical Education
Addition of 10,000 seats, with a goal of adding 75,000 medical seats over the next 5 years.
PM SVANidhi Revamp
Revamping of the scheme with enhanced loans from banks, UPI-linked credit cards, and capacity-building support.
Welfare of Online Platform Workers
Registration on the e-Shram portal and healthcare support under the PM Jan Arogya Yojana.
Support to States for Infrastructure Development
50-Year Interest-Free Loans to States
₹1.5 lakh crore allocated for 50-year interest-free loans for capital expenditure and incentivizing reforms.
Jal Jeevan Mission
Extension of the mission until 2028 with an enhanced total outlay to achieve 100% coverage of drinking water supply.
Power Sector Reforms
Incentives for distribution reforms and intra-state transmission augmentation.
Additional borrowing of 0.5% of GSDP to states, contingent on reform implementation.
Asset Monetization Plan (2025-30)
Launch of the plan to raise ₹10 lakh crore through asset monetization, to fund new infrastructure projects.

Urban Challenge Fund
₹1 lakh crore allocated for implementing proposals like 'Cities as Growth Hubs' and 'Creative Redevelopment of Cities'.
Maritime Development Fund
Corpus of ₹25,000 crore to finance long-term maritime development projects with up to 49% government contribution.
Nuclear Energy Mission for Viksit Bharat
Amendments to Atomic Energy and Civil Liability Laws
Amendments to facilitate private sector participation in nuclear energy development.
UDAN Scheme for Regional Connectivity
Expansion of regional connectivity to 120 new destinations, aiming to carry 4 crore passengers in the next 10 years.

Bihar’s Greenfield Airports and Koshi Canal Projects
Financial support for greenfield airports and projects like the Western Koshi Canal ERM (Eastern Region Management) project in Bihar.

Tourism for Employment-Led Growth
SWAMIH Fund-2
₹15,000 crore allocated to complete 1 lakh dwelling units through blended finance for urban development.

Development of Top 50 Tourist Destinations
Collaborative development of tourist destinations with states, boosting tourism and local economies.
Streamlined E-Visa Facilities
Introduction of simplified e-visa facilities for easier travel.
Intensive Skill Development Programmes
Skill development initiatives targeted at youth to improve employability in tourism-related sectors.
Performance-Linked Incentives to States
Financial incentives to states for improving tourism infrastructure and attracting investments.
MUDRA Loans for Homestays
MUDRA loans to facilitate homestay businesses, supporting rural tourism and entrepreneurship.

Ease of Travel and Connectivity
Improvements in travel facilities and connectivity to key tourist destinations, enhancing accessibility.
Investing in People, Economy, and Innovation
PM Research Fellowship
Provision of 10,000 fellowships for technological research in IITs and IISc to promote innovation and research.
Gene Bank for Crops Germplasm
Establishment of the 2nd Gene Bank with 10 lakh germplasm lines for future food and nutritional security.
Gyan Bharatam Mission
Documentation and conservation of over 1 crore manuscripts of Indian heritage.
Establishment of a National Digital Repository for Indian knowledge systems to facilitate knowledge sharing.

Research, Development & Innovation
Allocation of ₹20,000 crore to implement private sector-driven research, development, and innovation initiatives.
National Geospatial Mission
Development of foundational geospatial infrastructure and data.
Utilization of PM Gati Shakti to modernize land records, urban planning, and infrastructure projects.
Promoting Exports
Export Promotion Mission
Setting up sector-specific targets to facilitate easy access to export credit.
Offering assistance to MSMEs in overcoming non-tariff barriers in foreign markets.
BharatTradeNet (BTN)
Creation of BharatTradeNet, a digital platform for international trade, to streamline trade documentation and financing solutions.

Warehousing Facility for Air Cargo
Upgrading infrastructure and warehousing facilities for air cargo.
Special focus on high-value perishable horticulture produce.
Enhancing export capabilities through improved logistics.
Financial Sector Reforms and Development
Grameen Credit Score Framework
Introduce a framework to serve the credit needs of Self-Help Group (SHG) members and people in rural areas.
NaBFID Partial Credit Enhancement Facility
NaBFID (National Bank for Financing Infrastructure and Development) will establish a facility.
The facility will enhance credit for corporate bonds.
The aim is to support infrastructure development.

FDI Limit Increase in Insurance Sector
Foreign Direct Investment (FDI) limit for the insurance sector will be raised from 74% to 100%.
Tax Reforms
Changes in Direct Taxes
Introduction of changes in direct taxes, including the proposal for a new Income Tax Bill.
Regulatory Reforms
FSDC Mechanism
Establishment of the Financial Stability and Development Council (FSDC) to evaluate financial regulations and create a responsive framework for sectoral development.
Jan Vishwas Bill 2.0
Decriminalization of more than 100 provisions in various laws to ease regulatory burdens.

Indirect Tax Proposals
Sector-Specific Proposals
Make in India: Exemption for certain sectors like LED/LCD TV cells, textiles looms, and lithium-ion batteries for mobile phones and EVs.
Export Promotion: Duty-free inputs for handicrafts and leather sectors.

Improved Access to Lifesaving Medicines
Addition of 36 lifesaving drugs to the exempted list, and 6 medicines to the 5% duty list, including drugs for rare diseases, cancer, and chronic conditions.
Direct Tax Proposals
Personal Income Tax Reforms

Tax Deduction Benefits:
Senior citizens’ tax deduction limit increased from ₹50,000 to ₹1 lakh.
TDS on rent limit increased from ₹2.40 lakh to ₹6 lakh annually.
Incentives for Small Charitable Trusts
Increased registration period for small charitable trusts/institutions from 5 years to 10 years.
Property Tax Relief
Taxpayers allowed to claim the annual value for two self-occupied properties without any conditions.