Union Budget 2025: Key Highlights, Tax Reforms, and Economic Outlook
The Union Budget 2025, presented by the Finance Minister, introduces a range of reforms aimed at boosting India’s economic growth, improving infrastructure, supporting MSMEs, and making taxation more inclusive. Let’s take a closer look at the major takeaways, including revised income tax slabs, new sectoral allocations, and economic forecasts.
1. Income Tax Slabs and Benefits
One of the most awaited announcements in the budget is the revision of income tax slabs, which aims to provide relief to middle-class taxpayers. Here’s a comparison between the current and previous tax slabs:
Income Tax Slabs for FY 2025-26 vs. FY 2024-25
This revision lowers the tax burden on the ₹20-24 lakh income bracket by reducing their tax rate from 30% to 25%.
Rebate and Tax Savings for Different Income Levels
These changes offer higher tax rebates for individuals earning up to ₹12 lakh, ensuring better savings and disposable income.
2. Agriculture and Rural Development
- Comprehensive Program for Vegetables and Fruits: The government aims to achieve self-reliance (Aatmanirbhar Bharat) in edible oil and seed production.
- Makhana Board in Bihar: A specialized board will be set up to promote Makhana (Fox Nut) farming.
- National Mission on High-Yielding Seeds to enhance food security.
- Loan Limit under Kisan Credit Card (KCC) increased from ₹3 lakh to ₹5 lakh, benefiting 1.7 crore farmers.
3. MSMEs and Startups
- Credit Guarantee Cover for MSMEs doubled from ₹10 Cr. to ₹20 Cr.
- Fund-of-Funds for Startups worth ₹10,000 Cr. to encourage entrepreneurship.
- Solar and Renewable Energy Ecosystem for Micro, Small & Medium Enterprises (MSMEs) development.
4. Technology, AI, and Innovation
- Three Centers of Excellence in AI to be set up for education, health, and sustainability with a ₹500 Cr. outlay.
- Social Security Scheme for Gig Workers announced to provide financial stability for the growing gig economy.
5. Infrastructure and Investments
- Investment in Green Energy & Manufacturing for sustainable growth.
- 1.5 Lakh Cr. Interest-Free Loan to states for capital expenditure.
- 100 GW of Nuclear Energy targeted by 2047.
- Maritime Development Fund: ₹25,000 Cr. allocated for port infrastructure.
- Urban Challenge Fund: ₹1 Lakh Cr. to drive innovation in city planning.
6. Aviation & Connectivity
- New Udan Scheme announced to connect 120 destinations.
- Greenfield Airports in Bihar to boost regional connectivity.
7. Healthcare & Medical Education
- 10,000 additional medical seats in colleges.
- 75,000 seats planned over the next five years.
- 200 Cancer Centers to be established in 2025-26.
8. Economic Forecasts
Final Thoughts
The Union Budget 2025 focuses on tax relief, economic stimulus, and sectoral growth. With increased allocations in healthcare, MSMEs, infrastructure, and AI, India is set to achieve sustainable progress while maintaining fiscal discipline. The revised income tax slabs provide much-needed relief to taxpayers, especially those in the middle-income brackets.
What are your thoughts on the new budget? Let us know in the comments below!
Source : CNBC
