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Union Budget 2025-26: Key Highlights, New Tax Slabs, and Major Announcements


Theme:  “Sabka Vikas”

Union Budget 2025-26 Summary: The government has presented the Union Budget 2025-26 with the theme “Sabka Vikas.”

Union Budget 2025-26 Focus area:  zero poverty, quality education, affordable healthcare, skilled employment, women’s economic participation, and farmers’ prosperity.

(This budget is crucial for UPSC aspirants as it covers fiscal policies, economic reforms, and government schemes impacting India’s socio-economic landscape. Understanding the budget helps in GS Paper 3 (Economy), Essay, and Interview preparation.

Growth Engines of Development

 

1st Engine: Agriculture

  1. PM Dhan-Dhaanya Krishi Yojana – Boosts productivity, storage, irrigation.
  2. Aatmanirbharta in Pulses – Focus on Tur, Urad, Masoor with procurement support.
  3. Kisan Credit Card Loan – Limit raised from ₹3 lakh to ₹5 lakh.
  4. New Missions – High-yielding seeds, cotton productivity, fruits & vegetables.

 

2nd Engine: MSMEs

  1. Higher MSME Limits – Increased investment & turnover thresholds.
  2. ₹2 Crore Loan Scheme – For 5 lakh SC/ST & women entrepreneurs.
  3. Make in India Push – National Manufacturing Mission & toy industry growth.

 

3rd Engine: Investment

  1. 50,000 Atal Tinkering Labs – Innovation in government schools.
  2. Broadband for Rural Schools & Health Centers – Under BharatNet.
  3. ₹1.5 Lakh Crore – Interest-free loans for state capital expenditure.
  4. ₹1 Lakh Crore Urban Challenge Fund – Smart city & redevelopment projects.
  5. ₹20,000 Crore for R&D – Private sector-driven innovation & AI development.

 

4th Engine: Exports

  1. Export Promotion Mission – MSMEs to tap global markets.
  2. BharatTradeNet (BTN) – Digital trade infrastructure for seamless transactions.
  3. Support for Perishable Agri Exports & Electronics Industry.

 

Fiscal Consolidation

Fiscal Deficit Target: 4.8% in FY25 → 4.4% in FY26

Union Budget 2025-26 trends in deficit infogrpah

Revised Estimates FY25:

  1. Total Receipts (excluding borrowings): ₹31.47 lakh crore.
  2. Net Tax Receipts: ₹25.57 lakh crore.
  3. Total Expenditure: ₹47.16 lakh crore (₹10.18 lakh crore as capital expenditure).

Tax Slabs Reforms (New Tax Regime)

  1. No tax for income up to ₹12 lakh per annum.
  2. Salaried individuals earning up to ₹12.75 lakh to pay NIL tax (after ₹75,000 standard deduction).

 

New Schemes Announced

  1. PM SVANIDHI: Enhanced loans via UPI-linked credit cards (₹30,000 limit).
  2. Gyan Bharatam Mission: Survey and conservation of one crore manuscripts.
  3. Nuclear Energy Mission: ₹20,000 crore allocated for Small Modular Reactors R&D.
  4. Modified UDAN Scheme: 120 new regional air connectivity destinations.
  5. ₹15,000 crore SWAMIH Fund: To complete 1 lakh stalled housing units.
  6. Gig Workers Support: Identity cards, registration on the e-Shram portal, and healthcare under PM Jan Arogya Yojana.