Union Budget 2025-26:
The Union Budget 2025-26 was presented by the Union Finance Minister in the Parliament recognising 4 engines of development- agriculture, Micro, Small and Medium Enterprises (MSME),investment and exports.
- The Union Budget 2025-26, with the theme Sabka Vikas, aims to stimulate balanced growth across all regions.
1st Engine- Agriculture:
- Prime Minister Dhan-Dhaanya Krishi Yojana: Announced to cover 100 low agricultural productivity districts, benefiting 1.7 crore farmers, enhancing irrigation, and post-harvest storage facilities.
- A ‘Rural Prosperity and Resilience’ programme will be launched with states to address agricultural underemployment through skilling, investment, and technology.
- Atma Nirbharta in Pulses: A 6-year mission focusing on Tur, Urad, and Masoor announced launched, ensuring climate-resilient seeds and remunerative prices.
- Central agencies (NAFED and NCCF) will be prepared to procure these 3 pulses from farmers over the next 4 years.
- Enhanced Kisan Credit Card (KCC) Limit: Raised from ₹3 lakh to ₹5 lakh to facilitate credit flow for 7.7 crore farmers.
- National Mission on High Yielding Seeds: To strengthen research, ensuring availability of 100+ high-yielding and pest-resistant seed varieties.
- Mission for Cotton Productivity: A 5-year initiative promoting sustainable farming, increasing extra-long staple cotton production, and improving quality.
- Makhana Board in Bihar: To be established to enhance production, processing, and value addition of Makhana.
- Comprehensive Program for Fruits and Vegetables: To promote efficient supply chains and ensure better market prices for farmers.
- Fisheries Development: New framework for sustainable fishing in the Indian Exclusive Economic Zone and High Seas, focusing on Andaman & Nicobar and Lakshadweep.
- Urea Plant in Assam: A new urea plant in the premises of Brahmaputra Valley Fertilizer Corporation Ltd (BVFCL) with 12.7 lakh metric ton capacity to boost agricultural productivity.
2nd Engine- MSMEs:
- Revised MSME Classification: Investment and turnover limits increased to 2.5 times, expanding credit opportunities for small businesses.
- Micro Enterprise Credit Cards: Rs 5 lakh credit facility for 10 lakh micro enterprises, promoting financial inclusion and economic participation.
- Credit Cover for MSMEs: Guarantee cover increased from ₹5 crore to ₹10 crore, enabling higher loan access.
- Focus Product Scheme for Leather and Footwear: Expected to generate 22 lakh jobs and ₹4 lakh crore turnover, and exports of over ₹ 1.1 lakh crore.
- Toy Sector Development: Clusters and innovation-based manufacturing fostering ‘Made in India’ brand in global markets.
- National Institute of Food Technology: A National Institute of Food Technology, Entrepreneurship and Management to be established in Bihar, promoting food processing, skilling, and entrepreneurship.
- Fund of Funds for Startups: To be established with an expanded scope and an additional contribution of ₹10,000 crore.
3rd Engine- Investment
- Urban Challenge Fund: ₹1 lakh crore allocated to support ‘Cities as Growth Hubs,’ ‘Creative Redevelopment of Cities,’ and ‘Water and Sanitation,’ with ₹10,000 crore allocated for 2025-26.
- Jal Jeevan Mission: With total budget outlay enhanced to Rs 67,000 Crore and extension till 2028, ensuring universal piped water coverage with enhanced funding for rural water projects.
- 15 crore households representing 80% of India’s rural population have benefitted by the mission.
- Maritime Development Fund: ₹25,000 crore fund (49% contribution by the Government), supporting long-term financing for shipbuilding, ports, and logistics infrastructure.
- Expansion of IITs: Additional infrastructure for 6,500 more students, boosting India’s technical education capacity.
- PM Research Fellowship: 10,000 fellowships for advanced research in IITs and IISc.
- Day Care Cancer Centers: To be set up in all district hospitals in the next 3 years, with 200 Centres in 2025-26, ensuring affordable cancer treatment accessibility.
- Bharatiya Bhasha Pustak Scheme: Digital Indian language books to enhance school and higher education accessibility.
- Nuclear Energy Mission for Viksit Bharat: To be set up with a ₹20,000 crore outlay for Small Modular Reactors (SMRs), with at least 5 indigenously developed SMRs operational by 2033.
- Amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act will be taken up for active partnership with the private sector.
- UDAN – Regional Connectivity Scheme: A revised UDAN scheme will enhance regional connectivity to 120 new destinations, aiming to carry 4 crore passengers over the next 10 years.
- It will also support helipads and smaller airports in hilly, aspirational, and North East regions.
- Greenfield Airport in Bihar: Greenfield airports will be developed in Bihar, alongside the expansion of Patna airport and a brownfield airport at Bihta (Patna).
- Western Koshi Canal ERM Project: Financial support for irrigation infrastructure in Mithilanchal, Bihar.
- Tourism for Employment-led Growth: The top 50 tourist destinations across the country will be developed in partnership with states through a challenge mode.
4th Engine- Export Promotion:
- Export Promotion Mission: It will be established, with sectoral and ministerial targets, led collaboratively by the Ministries of Commerce, MSME, and Finance.
- BharatTradeNet (BTN): A unified digital platform facilitating international trade documentation and financing solutions.
- National Framework for GCC: Policy incentives to promote outsourcing hubs (Global Capability Centres) in emerging Tier-2 cities.
- Warehousing Facility for Air Cargo: Development of storage infrastructure for high-value perishable exports.
Taxation and Financial Reforms:
Direct Taxes: No Income Tax for annual incomes up to ₹12 lakh, extended to ₹12.75 lakh for salaried taxpayers with deductions.
Income (in ₹)
- ₹0 – ₹4 lakh =Nil
- ₹4 – ₹8 lakh =5%
- ₹8 – ₹12 lakh =10%
- ₹12 – ₹16 lakh =15%
- ₹16 – ₹20 lakh=20%
- ₹20 – ₹24 lakh =25%
- Above ₹24 lakh =30%
