Finance Minister Nirmala Sitharaman presented the Union Budget 2025
As Finance Minister Nirmala Sitharaman prepares to present the Union Budget 2026 on February 1, it is worth taking stock of key announcements and priorities of Budget 2025.
Budget 2025 Recap Ahead Of Union Budget 2026: 10 Points
- Budget 2025 was presented with the theme "Sabka Vikas". Nirmala Sitharaman said that people are at the heart of India's growth. It laid out the government's medium-term vision for growth, welfare, and reforms.
- No income tax up to Rs 12 lakh - Under the new tax regime, individuals with taxable income up to Rs 12 lakh pay zero income tax due to a higher Section 87A rebate. For salaried taxpayers, this benefit effectively extends to about Rs 12.75 lakh CTC because of the Rs 75,000 standard deduction.
- The budget set six broad goals: zero poverty, quality education for all, affordable healthcare, full skilling and employment, higher participation of women in the workforce, and stronger farmers making India a global food hub.
- Several measures were announced for farmers, including agri-district development, higher productivity in pulses, fruits and vegetables, fisheries, cotton, better seed quality, improved farm credit, and new projects like the Makhana Board in Bihar.
- The budget also proposed rationalising TDS rates, doubling the TDS exemption for senior citizens to Rs 1 lakh, and extending the time limit to file updated returns to four years. A new 25 per cent tax rate was introduced for income between Rs 20 lakh and Rs 24 lakh. Income above Rs 24 lakh will continue to be taxed at 30 per cent.
- Last year, total expenditure was estimated at Rs 50.65 lakh crore, while receipts excluding borrowings stood at Rs 34.96 lakh crore. The fiscal deficit target was fixed at 4.4 per cent of GDP. Capital expenditure was pegged at Rs 11.21 lakh crore, about 3.1 per cent of GDP.
- MSMEs were identified as the second engine of growth. The budget revised MSME classification norms, introduced credit cards for micro enterprises, expanded funding support for startups, and announced sector-specific schemes for footwear, leather, toys, and food processing.
- The government announced expansion of IITs, new centres of excellence for skilling and artificial intelligence, broadband connectivity for schools and health centres, and promotion of Indian-language learning materials.
- Medical education capacity was expanded, day-care cancer centres were planned in district hospitals, and schemes like Saksham Anganwadi and Poshan 2.0 were strengthened to improve nutrition and healthcare access.
- Budget 2025 pushed infrastructure through public-private partnerships, support to states, asset monetisation, irrigation projects, airports, urban development funds, shipping, nuclear energy, and regional connectivity under the UDAN scheme. Exports were named the fourth growth engine, backed by digital trade platforms and promotion missions. The budget also focused on research, deep-tech funding, regulatory simplification, financial sector reforms, and improving the investment climate across states.
