Union Budget

The Union Budget 2025-26, presented by the Union Finance Minister, aims to stimulate balanced growth across all regions and promote Viksit Bharat. According to estimates, the budget would be Rs 50,65,345 crore, which is 7.4% more than 2024–2025. Interest payments will make up 25% of spending and 37% of income. By March 2031, outstanding obligations should be lowered to around 50% of GDP, while deficits should be kept below 1.5% of GDP.

Union Budget 2025-26 Development Engines

1st Engine- Agriculture:

• Prime Minister Dhan-Dhaanya Krishi Yojana to improve agricultural productivity in 100 low-productivity districts.
• Launch of ‘Rural Prosperity and Resilience’ program to address agricultural underemployment.
• Launch of Atma Nirbharta in Pulses to ensure climate-resilient seeds and remunerative prices.
• Raised Kisan Credit Card (KCC) Limit to facilitate credit flow for 7.7 crore farmers.
• National Mission on High Yielding Seeds to strengthen research.
• Mission for Cotton Productivity to promote sustainable farming and improve quality.
• Establishment of Makhana Board in Bihar to enhance production, processing, and value addition of Makhana.
• Comprehensive Program for Fruits and Vegetables to promote efficient supply chains and better market prices.
• New framework for sustainable fishing in the Indian Exclusive Economic Zone and High Seas.
• Ura Plant in Assam to boost agricultural productivity.

2nd Engine- MSMEs:

• Revised MSME Classification to expand credit opportunities for small businesses.
• Micro Enterprise Credit Cards to provide Rs 5 lakh credit facility for 10 lakh micro enterprises.
• Increased credit cover for MSMEs from ₹5 crore to ₹10 crore.
• Focus Product Scheme for Leather and Footwear to generate 22 lakh jobs and ₹4 lakh crore turnover.
• Toy Sector Development to foster ‘Made in India’ brand in global markets.
• National Institute of Food Technology to be established in Bihar.
• Fund of Funds for Startups to be established with an expanded scope and additional contribution of ₹10,000 crore.

3rd Engine- Investment:

• Urban Challenge Fund to support ‘Cities as Growth Hubs,’ ‘Creative Redevelopment of Cities,’ and ‘Water and Sanitation.’
• Jal Jeevan Mission to ensure universal piped water coverage and enhanced funding for rural water projects.
• Maritime Development Fund to support long-term financing for shipbuilding, ports, and logistics infrastructure.
• Expansion of IITs and PM Research Fellowships.
• Day Care Cancer Centers to ensure affordable cancer treatment accessibility.
• Nuclear Energy Mission for Viksit Bharat to be set up with a ₹20,000 crore outlay for Small Modular Reactors.
• UDAN – Regional Connectivity Scheme to enhance regional connectivity to 120 new destinations.
• Greenfield Airport in Bihar to be developed.
• Tourism for Employment-led Growth to be developed in partnership with states.

4th Engine- Export Promotion:

• Establishment of Export Promotion Mission.
• BharatTradeNet (BTN) to facilitate international trade documentation and financing solutions.

Taxation and Financial Slab

• TDS on Rent increased from ₹2.4 lakh to ₹6 lakh.
• Tax Returns time limit extended from 2 years to 4 years.
• 36 life-saving drugs fully exempted from Basic Customs Duty (BCD).
• Lithium-ion battery manufacturing capital goods exempted to boost domestic production.
• Textile and electronics sector components exempted to encourage local manufacturing and reduce import dependency.

Social Welfare and Inclusion in India

• PM SVANidhi Scheme: UPI-linked credit cards for street vendors.
• Identity Cards for Gig Workers: Registration on e-Shram portal for social security and health benefits.
• 50,000 Atal Tinkering Labs: Establishment in government schools for innovation.
• Expansion of Medical Education: 10,000 new medical seats in five years.

Financial Sector Reforms

• Grameen Credit Score: Framework for efficient access to formal credit facilities.
• Jan Vishwas Bill 2.0: Decriminalization of over 100 legal provisions.
• SWAMIH Fund 2.0: Fund for 1 lakh more dwelling units.
• FDI in Insurance Sector: Increase from 74% to 100% for companies investing in India.
• Investment Friendliness Index of States: New ranking framework for states.
• Credit Enhancement Facility: NaBFID to support corporate bonds for infrastructure.
• Pension Sector: Forum for regulatory coordination and pension product development.
• High-Level Committee for Regulatory Reforms: Review of non-financial sector regulations.

Major Revenue Sources and Budget Expenditure

Major Central Government Expenditure Estimates

Financial Trends and Budgetary Estimates (2023-24 & 2024-25)

Receipts and Expenditure:

• Revenue receipts increased from ₹27.3 lakh crore in 2023-24 to ₹31.3 lakh crore in 2024-25.
• Effective capital expenditure decreased from ₹17.1 lakh crore to ₹16.3 lakh crore.
• Revenue expenditure increased from ₹34.9 lakh crore to ₹37.0 lakh crore.
• Capital expenditure rose from ₹12.5 lakh crore to ₹15.0 lakh crore (BE) but was revised to ₹13.2 lakh crore.

Deficit Trends:

• Fiscal deficit was 3.3% in 2023-24, unchanged for 2024-25.
• Revenue deficit was 0.3% in 2023-24, slightly increased to 0.8% in 2024-25.

Total Transfers to States & UTs:

• Total transfers to States and Union Territories increased from ₹20.65 lakh crore in 2023-24 to ₹22.76 lakh crore in 2024-25.

Net Receipt of the Central Government:

• Net tax revenue was ₹28.4 lakh crore in 2024-25.
• Non-debt capital receipts amounted to ₹0.8 lakh crore in 2024-25.