The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, has unveiled transformative reforms and allocations across sectors such as taxation, infrastructure, healthcare, education, and agriculture. With an emphasis on economic resilience, job creation, and inclusive development, this budget aims to accelerate India’s growth trajectory and strengthen its self-reliance.
Stay updated with all key announcements, and don’t forget to download the official PDF for complete details.
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Key Highlights of Budget 2025-26:
- Income Tax Reform: New simplified tax structure with zero tax up to Rs 12 lakh annual income.
- Support for Gig Workers: One crore gig workers to receive ID cards and social security benefits.
- Healthcare Boost: 200 new daycare cancer centers planned by 2026.
- Agricultural Innovation: Six-year mission for self-reliance in oilseed production.
- Education Development: Atal Tinkering Labs to be established in schools nationwide.
- MSME Support: Credit guarantee coverage increased to Rs 10 crore.
- Infrastructure Expansion: Rs 1.5 lakh crore allocated for state-led infrastructure reforms.
Table Overview of Budget 2025-26 Announcements:
| Sector | Announcement | Details |
|---|---|---|
| Income Tax | New tax regime | Income up to Rs 12 lakh tax-free |
| Gig Economy | Social Security for gig workers | ID cards and social security |
| Healthcare | Daycare cancer centers | 200 centers by fiscal 2026 |
| Agriculture | Oilseed self-reliance mission | Six-year development plan |
| Education | Atal Tinkering Labs | New labs in schools nationwide |
| MSME | Credit guarantee expansion | Increased to Rs 10 crore |
| Infrastructure | State infrastructure reforms | Rs 1.5 lakh crore allocation |
Union Budget 2025-26 Key Announcements
| Budget Announcements | Sector | Announcement | Details/Comments |
|---|---|---|---|
| Income Tax | New income tax regime | – Income up to Rs 12 lakh: No tax | Simplifies tax slabs and reduces the burden for middle-income groups. Encourages compliance under the new regime. |
| – Rs 8-12 lakh: 10% | Offers lower rates for incomes in this bracket, providing a boost for spending. | ||
| – Rs 12-16 lakh: 15% | Gradual progression ensures a fair structure. | ||
| – Rs 16-20 lakh: 20% | Reduces tax disparity and is competitive compared to global rates. | ||
| – Rs 20-25 lakh: 25% | Targets higher earners while keeping the rates reasonable. | ||
| – Above Rs 25 lakh: 30% | Retains the highest tax rate, maintaining progressivity in taxation. | ||
| TDS on rent | Annual limit raised from Rs 2.4 lakh to Rs 6 lakh | Benefits individuals and businesses renting properties by reducing the burden of tax deduction. | |
| Tax deduction for senior citizens | Limit doubled to Rs 1 lakh | Provides financial relief to senior citizens by increasing deductions. Encourages better financial management for retirees. | |
| Tax for salaried taxpayers | No income tax payable for income up to Rs 12.75 lakh | Increases disposable income for salaried individuals, driving consumption and economic activity. | |
| Tax on income up to Rs 4 lakh | Set at 0% under the new regime | Supports low-income earners, ensuring financial security and encouraging filing under the new tax regime. | |
| Start-ups | Benefits continuation | Benefits for start-ups will continue for five years from inception | Promotes entrepreneurship by providing tax exemptions and ease of doing business during the critical early years of start-ups. |
| Banking/Insurance | Grameen credit score framework | To be established for rural India | Aims to improve financial inclusion by offering rural populations access to formal credit systems based on a structured credit framework. |
| FDI in insurance sector | Limit raised to 100% | Encourages foreign investments, increases competition, and improves insurance penetration in India. | |
| Housing | Housing fund | Allocation of Rs 15,000 crore for the completion of one lakh housing units | Focuses on completing stalled projects, addressing housing shortages, and providing affordable homes for urban and rural populations. |
| Agriculture | Atmanirbharta in oil seeds | Six-year mission launched | Aims to reduce dependence on edible oil imports and boost domestic production, ensuring food security. |
| Cotton yield improvement | Five-year mission initiated | Promotes sustainable agricultural practices and enhances productivity for cotton farmers, ensuring global competitiveness. | |
| Kisan Credit Card | Loan limit increased from Rs 3 lakh to Rs 5 lakh | Provides financial flexibility to farmers, encouraging investment in modern farming techniques and reducing dependency on informal credit sources. | |
| Education | Atal Tinkering Labs | To be established in schools | Encourages innovation and problem-solving among students by providing access to modern tools and technologies. |
| Broadband internet | Provision for government secondary schools | Bridges the digital divide, ensures equitable access to online learning, and boosts digital literacy in rural and urban areas. | |
| IIT infrastructure | Additional infrastructure to increase student capacity; IIT Patna to be expanded | Addresses the demand for quality technical education and provides opportunities for more students to enroll in premier institutes. | |
| Healthcare | Daycare cancer centres | To be set up in all district hospitals; 200 centres planned by fiscal 2026 | Improves accessibility to specialized cancer treatments, reducing the burden on tertiary care hospitals. |
| Duty on life-saving drugs | Six life-saving drugs to have a 5% duty; 36 drugs exempted from basic customs duty | Reduces costs for critical medications, making healthcare more affordable for patients. | |
| Growth | MSME credit guarantees | Coverage raised from Rs 5 crore to Rs 10 crore | Supports small businesses in accessing credit, boosting job creation and economic activity. |
| Infrastructure | PPP mode projects | Three-year projects can be implemented in PPP mode | Encourages private sector participation in infrastructure development, ensuring timely completion and efficient resource utilization. |
| Interest-free loans | Rs 1.5 lakh crore allocated for states to implement infrastructure reforms | Strengthens state infrastructure and incentivizes reforms to attract further investments. | |
| Regional airports | Over 100 new regional airports planned over the next decade | Enhances regional connectivity, supporting tourism and economic growth in underserved areas. | |
| UDAN 2.0 | To connect 120 new airports, with a focus on Northeast and Bihar | Prioritizes connectivity in remote regions, promoting inclusive growth and reducing travel time for rural populations. | |
| Excise/Customs Duty | Export promotion mission | Set up for easier access to export credit | Simplifies export processes, improves competitiveness of Indian goods, and boosts foreign exchange reserves. |
| Tariff rates | Proposal to remove seven tariff rates, leaving eight remaining | Streamlines customs processes, reduces trade complexities, and promotes ease of doing business. | |
| Economy | Investment-friendly index | To promote competition among states | Encourages states to create better investment climates, leading to regional economic growth. |
| Fiscal deficit | Revised fiscal deficit target set at 4.8% for fiscal year 2025 | Reflects the government’s commitment to fiscal discipline while balancing growth and expenditure priorities. | |
| Capital expenditure | Set at Rs 10.18 lakh crore | Focuses on infrastructure development, driving economic growth and creating job opportunities. | |
| Women’s Development | Term loan for women entrepreneurs | Up to Rs 2 crore available for first-time entrepreneurs from SC/ST and backward classes | Encourages women-led entrepreneurship, particularly among marginalized communities, ensuring economic inclusion. |
| Rural India | Nutritional support | For over eight crore children and one crore lactating mothers | Targets malnutrition, promoting health and well-being for vulnerable groups. |
| Make in India | National Manufacturing Mission | Provides policy support and monitoring framework | Strengthens domestic manufacturing, reducing imports and fostering innovation. |
| Clean technology manufacturing mission | New initiative launched | Encourages production of clean energy technologies, supporting sustainability goals. | |
| Nuclear Energy Mission | Focused on research and development | Advances the use of nuclear energy for peaceful purposes, including energy security. | |
| Water Management | Jal Jeevan Mission | Extended until 2028 | Ensures universal access to clean drinking water, particularly in rural areas. |
| Technology | Centre of Excellence in AI | To be established with an allocation of Rs 500 crore | Boosts India’s position in AI research and development, fostering innovation across industries. |
| EV battery manufacturing | Additional capital goods for production | Supports the electric vehicle ecosystem, reducing dependence on fossil fuels and contributing to environmental goals. | |
| Tourism | Visa fee waivers | For certain tourist groups | Encourages foreign tourism, contributing to revenue generation and cultural exchange. |
Detailed Announcements:
Income Tax Reforms
- A new, simplified income tax structure has been introduced:
- Income up to Rs 12 lakh: No tax
- Rs 12-16 lakh: 10%
- Rs 16-20 lakh: 20%
- Rs 20-25 lakh: 25%
- Above Rs 25 lakh: 30%
- TDS limit on rent increased from Rs 2.4 lakh to Rs 6 lakh annually.
- Enhanced tax deductions for senior citizens, doubling the limit to Rs 1 lakh.
Gig Worker Support Initiative
- One crore gig workers, including those on platforms like Swiggy, Zomato, and BigBasket, to receive unique ID cards.
- Workers will be covered under the PM Jan Arogya Yojana.
- Simplified registration process through the e-Shram portal.
- Social security benefits to improve the gig economy landscape.
Healthcare Improvements
- 200 daycare cancer centers to be established by 2026.
- Six life-saving drugs will have a 5% duty, while 36 others are exempted from basic customs duty.
- Pharmaceutical companies’ patient assistance programs will be duty-exempt if medicines are provided free.
Agricultural Advancements
- The six-year mission launched for self-reliance in oilseed production.
- Five-year cotton yield improvement initiative.
- The loan limit for the Kisan Credit Card increased from Rs 3 lakh to Rs 5 lakh.
Education and Technology
- Establishment of Atal Tinkering Labs in schools to foster innovation.
- Broadband internet provision for all government secondary schools.
- Expanded infrastructure for IITs, with a focus on increasing student capacity.
Infrastructure and Investment
- Rs 1.5 lakh crore allocated for state-led infrastructure reforms.
- Over 100 new regional airports are planned over the next decade under UDAN 2.0.
- Investment-friendly index to promote healthy competition among states.
Women’s Development Initiatives
- Term loans of up to Rs 2 crore for first-time women entrepreneurs from SC/ST and backward classes.
- Nutritional support for over eight crore children and one crore lactating mothers.
Why Budget 2025 is Crucial for India
This budget is a pivotal step toward fostering economic growth, social welfare, and job creation. Key reforms in tax policies, agricultural advancements, and technological initiatives aim to position India as a global economic powerhouse.
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Expected Changes in Tax Policies
- Increased standard deduction limit in the new tax regime.
- Introduction of a 25% tax slab for income ranging from Rs 20 lakh to Rs 25 lakh.
- Enhanced tax relief for senior citizens under section 80D.
Promotion of New Tax Regime
The government aims to encourage taxpayers to transition to the new tax regime by making it more straightforward and user-friendly.
| BUDGET 2025-2026 SPEECH OF NIRMALA SITHARAMAN MINISTER OF FINANCE | Download PDF |
| Key Features of Budget 2025-2026 | Download PDF |
| SUMMARY OF UNION BUDGET 2025-26 | Download PDF |
Union Budget 2025-26 – General FAQs
What are the major highlights of Budget 2025-26?
Key highlights include a new income tax regime, support for gig workers, healthcare improvements, and Rs 1.5 lakh crore allocation for infrastructure.
What are the new income tax slabs in Budget 2025-26?
Income up to Rs 12 lakh is tax-free. The slabs range from 10% for Rs 12-16 lakh income to 30% for income above Rs 25 lakh.
How does Budget 2025 benefit gig workers?
One crore gig workers will receive ID cards and social security benefits under PM Jan Arogya Yojana.
What initiatives are announced for healthcare in Budget 2025-26?
200 new daycare cancer centers are planned, and several life-saving drugs are exempt from basic customs duty.
How can I download the complete PDF for Budget 2025-26?
Visit the official government website or stay connected with us for the direct download link.
Disclaimer:
This article provides a general overview of the Union Budget 2025-26 based on official announcements. Please refer to the official document for complete and accurate details.
