Finance Minister Nirmala Sitharaman presented the Union Budget for 2025-26 in Parliament on February 1, 2025. This marks the eighth consecutive year she has delivered the budget. The budget is set to allocate substantial resources to key sectors such as agriculture, industry, health, and education, with a focus on providing relief to the public and creating employment opportunities. It also plays a crucial role in advancing the vision of an ‘Atmanirbhar Bharat’ (Self-Reliant India).
In her announcement, the Finance Minister introduced significant reforms to the Personal Income Tax (PIT) system, alongside the rationalization of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS), aimed at reducing the compliance burden. Furthermore, the government has declared exemptions from Basic Customs Duty (BCD) on essential minerals such as cobalt powder, lithium-ion battery waste, lead, and zinc, among 12 other minerals. Additionally, 35 items related to electric vehicle (EV) battery manufacturing and 28 items for mobile phone battery production will now be added to the list of exempted capital goods.
Budget 2025: Full list of key announcements
Gareeb, youth, nari will be the key focus
Underemployment in agri will be addressed, 1.7 crore farmers will benefit
National Mission on high yielding seeds will be launched
Emphasis on Gig economy
India Post to become large public logistic organisation
Atal Tinkering Labs: 50,000 such labs to be set up in govt schools in 5 years
Rs 10,000 crore fund of funds proposed for start ups
10,000 additional seats to be inculcated in medical institutes; 75,000 medical seats in 5 years will be created
Kisan Credit Cards for 7.7 crore farmers; loan Limit enhanced to Rs 5 lakh
MSME: Term loans up to Rs 20 crore will be given
Modified UDAN scheme to be launched; 120 new destinations under modified UDAN scheme
SWAMIH Fund: another 40,000 housing units to be completed in 2025
Top 50 tourism destination to be developed
National Geospatial Mission announced
Second Gene Bank to be set up for future food security
Greenfield airports to be facilitated in Bihar
Jan Vishwas Bill 2.0 to be brought in to decriminalise 100 provisions
Revised fiscal deficit estimated to be 4.8% of GDP
Capital expenditure at Rs 10.18 lakh crore
Gross market borrowings at Rs 14.82 lakh crore
Social welfare surcharge on 82 tariff lines waived
36 life-saving drugs fully exempted from customs duty
Handicrafts: 9 items to be added to duty free inputs
Personal tax reforms with special focus on middle class
TCS for remittance on education purposes removed
Compliance burden reduced for small charitable trusts
New scheme to determine Arms length Price in international transactions to be introduced
Digitalisation being operationalised in tax frameworks
Start ups: Extending incorporation benefits for five years
Capital gains limit exceeded to Rs 12.7 lakh
Income tax slabs changed
Income of Rs 18 lakh will get Rs 70,000 tax benefit
Now maximum rate of 30% kick in at Rs 24 lakh taxable compared to Rs 15 lakh earlier