{"id":36700,"date":"2025-02-03T19:16:26","date_gmt":"2025-02-03T13:46:26","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=36700"},"modified":"2025-08-06T16:30:59","modified_gmt":"2025-08-06T11:00:59","slug":"union-budget-2025-26","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/03-02-2025\/union-budget-2025-26","title":{"rendered":"Union Budget 2025-26 :Key Highlights\u00a0"},"content":{"rendered":"\n

Syllabus :GS3\/Economy <\/strong><\/p>\n\n\n\n

In Context<\/strong><\/h2>\n\n\n\n
    \n
  • The Union Budget 2025-26<\/strong> was framed around the theme “Sabka Vikas<\/strong>,” emphasizing balanced growth across all regions of India.\n
      \n
    • The term ‘budget’<\/strong> has nowhere been mentioned in the Constitution<\/strong>. It is mentioned as ‘Annual financial statement’<\/strong> in Article 112.<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n

      About <\/strong><\/h2>\n\n\n\n
        \n
      • The Finance Minister quoted the renowned Telugu poet Shri Gurajada Appa Rao\u2019s sayin<\/strong>g, \u201cA country is not just its soil; a country is its people,\u201d to highlight the importance of people-centric development.<\/li>\n\n\n\n
      • Principles of Viksit Bharat:<\/strong>\n
          \n
        • Eradicate poverty (Zero-poverty)<\/li>\n\n\n\n
        • Provide high-quality, universal school education<\/li>\n\n\n\n
        • Ensure access to affordable, comprehensive healthcare<\/li>\n\n\n\n
        • Achieve full employment with a skilled workforce<\/li>\n\n\n\n
        • Involve 70% women in economic activities<\/li>\n\n\n\n
        • Strengthen agriculture to make India the “food basket of the world<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n
          Budget Estimates 2025-26<\/strong>
          – The total receipts other than borrowings and the total expenditure are estimated at \u20b9 34.96 lakh crore and \u20b9 50.65 lakh crore respectively.
          – The net tax receipts are estimated at \u20b9 28.37 lakh crore.
          – The fiscal deficit is estimated to be 4.4 per cent of GDP.<\/strong>
          – The gross market borrowings are estimated at \u20b9 14.82 lakh crore.
          – Capex Expenditure of \u20b911.21 lakh crore (3.1% of GDP) earmarked in FY2025-26.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

          Key Engines of Growth<\/strong><\/h2>\n\n\n\n
            \n
          • Agriculture (1st Engine): <\/strong>Launch of Prime Minister Dhan-Dhaanya Krishi Yojana to cover 100 districts.\n
              \n
            • Mission for Aatmanirbharta in Pulses for Tur, Urad, and Masoor pulses.<\/li>\n\n\n\n
            • Loan limit for Kisan Credit Cards raised from \u20b93 lakh to \u20b95 lakh.<\/li>\n\n\n\n
            • Comprehensive program for vegetables, fruits, high-yield seeds, and cotton productivity.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n
              \n
              \"Prime-Minister-Dhan-Dhaanya-Krishi-Yojana\"<\/figure>\n<\/div>\n\n\n
                \n
              • MSMEs (2nd Engine)<\/strong>: MSME investment & turnover limits enhanced to 2.5 and 2 times.\n
                  \n
                • Credit cards for micro enterprises and a loan scheme for 5 lakh women and marginalized entrepreneurs.<\/li>\n\n\n\n
                • Development of a toy manufacturing hub and National Manufacturing Mission.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n
                  \n
                  \"MSMEs-2nd-Engine\"<\/figure>\n<\/div>\n\n\n
                    \n
                  • Investment (3rd Engine):<\/strong> 50,000 Atal Tinkering Labs to be set up in schools.\n
                      \n
                    • Broadband for all secondary schools & PHCs under BharatNet project.<\/li>\n\n\n\n
                    • Establishment of National Centres of Excellence for skilling.<\/li>\n\n\n\n
                    • \u20b91.5 lakh crore for 50-year interest-free loans to states for capital expenditure.<\/li>\n\n\n\n
                    • Urban Challenge Fund of \u20b91 lakh crore to support urban development.<\/li>\n\n\n\n
                    • \u20b920,000 crore for private sector-driven R&D and innovation.<\/li>\n\n\n\n
                    • National Geospatial Mission for urban planning and Gyan Bharatam Mission for manuscript conservation.<\/li>\n\n\n\n
                    • Nuclear Energy Expansion<\/strong>: Rs.20,000 crore for Small Modular Reactors (SMRs).<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n
                      \n
                      \"Investment-3rd-Engine\"<\/figure>\n<\/div>\n\n
                      \n
                      \"Union-Budget-2025-26\"<\/figure>\n<\/div>\n\n\n
                        \n
                      • Exports (4th Engine): <\/strong>Launch of Export Promotion Mission and BharatTradeNet for trade documentation.\n
                          \n
                        • Support for domestic manufacturing and integration with global supply chains.<\/li>\n\n\n\n
                        • Infrastructure support for air cargo and fisheries exports.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n
                          \n
                          \"Financial-Sector\"<\/figure>\n<\/div>\n\n\n

                          Reforms<\/strong><\/h2>\n\n\n\n
                            \n
                          • Financial Sector : <\/strong>Increase in FDI limit in insurance from 74% to 100%.\n
                              \n
                            • Establishment of a High-Level Committee for Regulatory Reforms.<\/li>\n\n\n\n
                            • Introduction of the Investment Friendliness Index of States.<\/li>\n\n\n\n
                            • Decriminalization of 100+ provisions under the Jan Vishwas Bill 2.0.<\/li>\n\n\n\n
                            • Financial Stability and Development Council (FSDC) to review regulations.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n
                              \n
                              \"Financial-Sector\"<\/figure>\n<\/div>\n\n\n
                                \n
                              • Taxation & Fiscal Policy: <\/strong>Fiscal deficit target of 4.4% of GDP for FY 2025-26.\n
                                  \n
                                • Increased receipts and expenditure estimates for 2025-26.<\/li>\n\n\n\n
                                • Commitment to fiscal consolidation with a clear roadmap.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n

                                  Tax Proposals :<\/strong><\/h2>\n\n\n\n
                                    \n
                                  • Personal Income Tax Reform:  <\/strong>no tax for income up to \u20b912 lakh per annum.\n
                                      \n
                                    • Standard deduction of \u20b975,000 for income up to \u20b912.75 lakh.<\/li>\n\n\n\n
                                    • Estimated \u20b91 lakh crore revenue loss due to tax reforms.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n
                                      \n
                                      \"Personal-Income-Tax-Reform\"<\/figure>\n<\/div>\n\n\n
                                        \n
                                      • TDS\/TCS Rationalization: <\/strong>TDS limit on interest for senior citizens increased from \u20b950,000 to \u20b91 lakh.\n
                                          \n
                                        • TDS threshold on rent raised to \u20b96 lakh from \u20b92.4 lakh.<\/li>\n\n\n\n
                                        • Extension of updated returns filing to 4 years for any assessment year.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
                                        • Compliance Simplification: <\/strong>Increase in registration period for small charitable trusts from 5 to 10 years.\n
                                            \n
                                          • Senior citizens benefit from tax exemption on National Savings Scheme withdrawals.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
                                          • Promotion of Employment & Investment: <\/strong>Presumptive taxation regime for non-residents providing services to electronics manufacturing companies.<\/strong>\n
                                              \n
                                            • Extension of the Sovereign Wealth Funds and Pension Funds investment deadline to 2030.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n
                                              \n
                                              \"indirect-tax-proposals\"<\/figure>\n<\/div>\n\n\n
                                                \n
                                              • Customs Tariff Reforms<\/strong>: Removal of seven tariffs, simplification of cess, and reduction of Basic Customs Duty (BCD) on critical minerals and textiles.\n
                                                  \n
                                                • Reduction in BCD on lithium-ion battery manufacturing capital goods and shipbuilding materials.<\/li>\n\n\n\n
                                                • Duty adjustments to encourage domestic manufacturing.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
                                                • Export Promotion<\/strong>: Reduction of BCD on fish products and leather to boost exports.\n
                                                    \n
                                                  • Fully exempted BCD on lifesaving medicines for cancer, rare diseases, and chronic illnesses.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n
                                                    State wise Initiatives<\/strong>
                                                    – Bihar<\/strong>: New Greenfield Airport, Western Koshi Canal Project, Makhana Board.
                                                    – Uttar Pradesh: <\/strong>Medical College Expansion, Jal Jeevan Mission, Tourism Growth.
                                                    – Maharashtra:<\/strong> Urban Challenge Fund, Gig Worker Social Security, Nuclear Energy Mission.
                                                    – Tamil Nadu<\/strong>: Shipbuilding Clusters, Urban Challenge Fund.
                                                    – Gujarat<\/strong>: Maritime Development Fund, Nuclear Energy Expansion.
                                                    – Karnataka<\/strong>: AI for Education Centre, PM Research Fellowships at IISc.
                                                    – Andhra Pradesh & Telangana:<\/strong> Water & Sanitation, Digital Books in Telugu.
                                                    – Rajasthan:<\/strong> Cotton Productivity Mission, Medical College Expansion.
                                                    – Punjab & Haryana: <\/strong>Pulses Mission, Enhanced Credit for Farmers.
                                                    – North-East:<\/strong> New Urea Plant in Assam, Fisheries Development.

                                                    Ministry-wise expenditure in 2025-26 (Rs crore)<\/strong>
                                                    \"Ministry-wise<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

                                                    Source ;PIB<\/strong><\/p>\n\n\n\n

                                                    <\/p>\n","protected":false},"excerpt":{"rendered":"

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