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The Union Budget 2025, presented by the Finance Minister, aims to boost economic growth, enhance competitiveness, and improve the overall quality of life for citizens. The Budget focuses on stability, tax relief, and incremental measures to promote entrepreneurship, innovation, and job creation. With a mix of short-term and long-term measures, the Budget seeks to address the challenges facing the economy while building a strong foundation for sustainable growth and development.
Key Highlights
1. *Tax Relief*: No income tax will be payable for incomes up to Rs 12 lakh under the new tax regime. This means individuals earning up to Rs 12.75 lakh per year won't have to pay income tax.
2. *Revised Tax Slabs*: The existing tax slabs in the new regime have been revised to reduce the tax burden on those with higher incomes.
3. *Capital Expenditure*: Capital expenditure has been maintained at 3.14% of GDP, with total budgeted capex rising by 4.9% year-on-year.
4. *Customs Duties*: Customs duties have been reduced to enhance competitiveness, although major tariff cuts were avoided due to global trade conditions.
5. *Fiscal Deficit*: The fiscal deficit target for FY26 has been set at 5.8% of GDP, slightly higher than the 5.6% target for FY25.
Sector-wise Allocation
1. *Infrastructure*: Rs 10.4 lakh crore allocated for infrastructure development, including roads, railways, and urban infrastructure.
2. *Agriculture*: Rs 1.25 lakh crore allocated for agriculture and allied sectors, with a focus on increasing farmers' income.
3. *Education*: Rs 1.12 lakh crore allocated for education, with an emphasis on improving quality and accessibility.
4. *Healthcare*: Rs 88,956 crore allocated for healthcare, with a focus on strengthening primary healthcare and expanding health insurance coverage.
Tax Proposals
1. *Income Tax*: No changes in income tax rates, but the tax exemption limit has been increased to Rs 12 lakh.
2. *Corporate Tax*: No changes in corporate tax rates, but the surcharge on long-term capital gains has been reduced.
3. *GST*: No major changes in GST rates, but some exemptions and concessions have been announced.
Other Key Announcements
1. *Digital India*: Rs 4,387 crore allocated for the Digital India initiative, with a focus on expanding digital infrastructure and promoting digital literacy.
2. *Startups*: Several incentives announced for startups, including tax exemptions and funding support.
3. *MSMEs*: Rs 9,000 crore allocated for the Micro, Small and Medium Enterprises (MSMEs) sector, with a focus on providing credit support and promoting entrepreneurship.
Overall, the Budget focuses on stability, boosting consumption through tax relief, and enhancing competitiveness through incremental measures.
Key Highlights
1. *Tax Relief*: No income tax will be payable for incomes up to Rs 12 lakh under the new tax regime. This means individuals earning up to Rs 12.75 lakh per year won't have to pay income tax.
2. *Revised Tax Slabs*: The existing tax slabs in the new regime have been revised to reduce the tax burden on those with higher incomes.
3. *Capital Expenditure*: Capital expenditure has been maintained at 3.14% of GDP, with total budgeted capex rising by 4.9% year-on-year.
4. *Customs Duties*: Customs duties have been reduced to enhance competitiveness, although major tariff cuts were avoided due to global trade conditions.
5. *Fiscal Deficit*: The fiscal deficit target for FY26 has been set at 5.8% of GDP, slightly higher than the 5.6% target for FY25.
Sector-wise Allocation
1. *Infrastructure*: Rs 10.4 lakh crore allocated for infrastructure development, including roads, railways, and urban infrastructure.
2. *Agriculture*: Rs 1.25 lakh crore allocated for agriculture and allied sectors, with a focus on increasing farmers' income.
3. *Education*: Rs 1.12 lakh crore allocated for education, with an emphasis on improving quality and accessibility.
4. *Healthcare*: Rs 88,956 crore allocated for healthcare, with a focus on strengthening primary healthcare and expanding health insurance coverage.
Tax Proposals
1. *Income Tax*: No changes in income tax rates, but the tax exemption limit has been increased to Rs 12 lakh.
2. *Corporate Tax*: No changes in corporate tax rates, but the surcharge on long-term capital gains has been reduced.
3. *GST*: No major changes in GST rates, but some exemptions and concessions have been announced.
Other Key Announcements
1. *Digital India*: Rs 4,387 crore allocated for the Digital India initiative, with a focus on expanding digital infrastructure and promoting digital literacy.
2. *Startups*: Several incentives announced for startups, including tax exemptions and funding support.
3. *MSMEs*: Rs 9,000 crore allocated for the Micro, Small and Medium Enterprises (MSMEs) sector, with a focus on providing credit support and promoting entrepreneurship.
Overall, the Budget focuses on stability, boosting consumption through tax relief, and enhancing competitiveness through incremental measures.
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