New Delhi: Union Finance Minister Nirmala Sitharaman on Saturday presented the Union Budget for fiscal year (FY) 2025-26, setting the stage for transformative economic reforms, and massive relief to taxpayers with a key focus on farmers, the poor, and middle class amongst others.
According to the latest budget, the tax-free income limit has been increased to Rs 12 lakh under the new tax regime, which will offer huge relief to middle class.
Similarly, salaried individuals can now earn up to Rs 12.75 lakh without paying any income tax, thanks to a standard deduction of Rs 75,000.
For those earning Rs 16 lakhs, Rs 18 lakhs, Rs 20 lakhs, Rs 25 lakhs, and Rs 50 lakhs, the effective tax rates have been reduced to 7.5%, 8.8%, 10%, 13.2%, and 21.6% respectively.
The government estimates that this will result in a Rs 1 lakh crore revenue loss but aims to compensate through economic expansion.
For the agriculture sector, the Government will undertake a ‘Prime Minister Dhan-Dhaanya Krishi Yojana’ in partnership with states. This scheme will cover 100 districts with low productivity and will help 1.7 crore farmers.
The government will now also launch a 6-year “Mission for Aatmanirbharta in Pulses” with a special focus on Tur, Urad, and Masoor.
The Kisan Credit Card (KCC) loan limit has been raised from Rs 3 lakh to Rs 5 lakh, ensuring better access to credit for 7.7 crore farmers, fishermen, and dairy producers.
Similarly, a comprehensive multi-sectoral ‘Rural Prosperity and Resilience’ programme will be launched in partnership with states which will address under-employment in agriculture through skilling, investment, technology, and invigorating the rural economy.
By this, the goal is to generate ample opportunities in rural areas so that migration becomes an option, rather a necessity.
To tackle urban poverty and provide financial security, the government will now issue Gig Worker ID cards, registering them on the e-Shram portal and extending healthcare benefits under the PM Jan Arogya Yojana.
This move is expected to benefit 1 crore gig workers across the country.
A new Special Window for Affordable and Mid-Income Housing (SWAMIH)Fund 2 will be established as a blended finance facility with contribution from the Government, banks and private investors.
This fund of Rs 15,000 crore aims to complete another 1 lakh housing units across the country.
The MSME sector which has now become a major component of India’s economy will now see a massive jump in the Credit Guarantee Cover from Rs 5 crore to Rs 10 crore, unlocking additional credit worth Rs 1.5 lakh crore over five years.
Similarly, Startups will now have access to Rs 20 crore in guaranteed credit, with special incentives for 27 focus sectors under Atmanirbhar Bharat.
In the Tourism Sector, the Top 50 tourist destination sites in India will be developed in partnership with states through a challenge mode. The plan includes performance-linked incentives, MUDRA loans for homestays, and improved e-visa facilities to attract global travelers.
In a move to strengthen India’s maritime sector, a Rs 25,000 crore Maritime Development Fund will be established.
The aim is to provide long-term and low-cost financial support for indigenous shipbuilding and other such blue-water-related projects.
Meanwhile, the Ude Desh ka Aam Naagrik (UDAN) scheme will expand regional connectivity to 120 new destinations, targeting 4 crore passengers over the next decade.
Also, a Nuclear Energy Mission for research and development of Small Modular Reactors (SMR) with an outlay of Rs 20,000 crore will be set up, which aims to develop 5 indigenously developed SMRs in operation by 2033.
This move is expected to benefit 1 crore gig workers across the country.
A new Special Window for Affordable and Mid-Income Housing (SWAMIH)Fund 2 will be established as a blended finance facility with contribution from the Government, banks and private investors. This fund of Rs 15,000 crore aims to complete another 1 lakh housing units across the country. The MSME sector which has now become a major component of India’s economy will now see a massive jump in the Credit Guarantee Cover from Rs 5 crore to Rs 10 crore, unlocking additional credit worth Rs 1.5 lakh crore over five years. Similarly, Startups will now have access to Rs 20 crore in guaranteed credit, with special incentives for 27 focus sectors under Atmanirbhar Bharat.
In the Tourism Sector, the Top 50 tourist destination sites in India will be developed in partnership with states through a challenge mode. The plan includes performance-linked incentives, MUDRA loans for homestays, and improved e-visa facilities to attract global travelers. In a move to strengthen India’s maritime sector, a Rs 25,000 crore Maritime Development Fund will be established.The aim is to provide long-term and low-cost financial support for indigenous shipbuilding and other such blue-water-related projects.
Meanwhile, the Ude Desh ka Aam Naagrik (UDAN) scheme will expand regional connectivity to 120 new destinations, targeting 4 crore passengers over the next decade.
Also, a Nuclear Energy Mission for research and development