The 2025 Union Budget presented by the Modi government has brought a renewed sense of optimism and relief among diverse demographic groups, from employees to employers, and farmers to traders. The government’s ability to foresee public sentiment and respond accordingly has led to the introduction of a budget designed to address the pressing needs of various sectors, especially ahead of the Delhi and Bihar assembly elections. Finance Minister Nirmala Sitharaman has aimed to meet the expectations of all stakeholders through strategic initiatives in this comprehensive budget.
₹50.65 Lakh Crore Budget Overview
The total outlay for the financial year 2025-26 is a whopping ₹50.65 lakh crore, a significant increase of ₹6 lakh crore compared to the current fiscal year’s budget. According to the Economic Survey 2024-25, the anticipated economic growth may reach up to 6.8% in the next fiscal year, underlining the need for such a substantial budget to stimulate the economy.
Tax Revisions for Employees and Business Leaders
A highlight of the budget is the new tax regime that allows earning up to ₹12 lakh to be tax-free. With an addition of a standard deduction of ₹75,000, the effective income tax on an income of ₹12.75 lakh becomes zero. This announcement has sat well with both the salaried class and business leaders. Currently, only those earning above ₹15 lakh are subjected to a 30% tax rate, which has been raised to ₹24 lakh in this budget.
Details of the Tax Benefits
| Income Level | Previous Tax Rate | New Tax Rate |
|---|---|---|
| Up to ₹5 lakh | Tax-Free | Tax-Free |
| ₹5 – ₹12 lakh | 5% – 20% | Tax-Free |
| ₹15 – ₹24 lakh | 30% | 30% |
By extending the tax-free limit to ₹5 lakh for the salaried class, and applying benefits for those earning up to ₹24 lakh, the budget successfully caters to a large section of the populace, including junior staff and mid-level executives.
Support for Farmers and Businesses
The government’s focus extends beyond the salaried class, aiming to stimulate consumption across a broader demographic. With provisions for both farmers and the micro, small, and medium enterprises (MSME) sector, the budget addresses critical areas of need:
Key Initiatives for Agriculture
To bolster the agricultural sector, several initiatives such as the ‘Prime Minister’s Dhan-Dhan Yojana’, a mission for self-reliance in pulses production, and an extensiveprogram for vegetables and fruits have been announced. Moreover, the farmer credit card limit will be raised from ₹3 lakh to ₹5 lakh, enhancing financial accessibility for agricultural professionals.
MSME Sector Initiatives
For the MSME sector, a robust categorization revision has been introduced, along with increased limits for investments and business volumes. Significant measures include:
- Customized credit cards with a limit of ₹5 lakh for 10 lakh micro-industries.
- A fund of ₹10,000 crores allocated for startups.
- Loan facilities up to ₹2 crores for 5 lakh women entrepreneurs from SC/ST backgrounds.
Empowerment of Women and Youth
The budget also emphasizes female empowerment and youth readiness. Initiatives include the expansion of Anganwadi services and an introduction of 50,000 Atal Tinkering Labs. Furthermore, plans to boost skill development and government school infrastructure have also been highlighted.
Healthcare and Gig Economy Support
In efforts to enhance public health, the expansion of medical college seats, establishing daycare cancer centers in district hospitals, and health insurance for gig workers such as delivery personnel are notable initiatives. These steps aim to improve overall welfare and offer safety nets to vulnerable workers.
Infrastructure Development and Capital Expenditure
Maintaining capital expenditure is crucial for national development, and the budget outlines various infrastructural improvements including:
- Public-private partnerships for pipeline constructions.
- Creation of new ministries aimed at facilitating growth.
- Additional funds for state-level infrastructure projects.
Other notable proposals include the ‘Urban Development Plan’, and augmentation of the ‘Clean Water Mission’, showcasing a thorough approach to the country’s infrastructural evolution.
In summary, the 2025 Union Budget has crafted a framework that not only caters to the present needs of employees, farmers, and businesses but also lays a robust groundwork for future development. With a keen focus on inclusivity, it aims to stimulate growth across sectors and uplift various demographic groups effectively.