Union Budget 2025 Key Points: Roadmap To India’s Growth

The Union Budget 2025 speech by FM Nirmala Sitharaman was surprising as well as very positive for the country’s growth. FM discussed the many important yojanas and schemes which have provided a roadmap to the country’s growth.

The Union Budget 2025 promises to continue the Government's efforts to accelerate growth, secure inclusive development, and private sector investments. Aldo to uplift household sentiments, and enhance the spending power of India’s rising middle class. This Budget 2025 proposes development measures focusing on the poor, youth, farmers and women.

The Budget aims to initiate transformative reforms in Taxation, Power Sector, Urban Development, Mining. Also Financial Sector, and Regulatory Reforms to augment India’s growth potential and global competitiveness.

Also Read | Union Budget 2025 For Middle Class: Nil Income Tax upto Rs 12 Lakh?

Union Budget 2025: Agriculture

In Union Budget 2025, Budget announced ‘Prime Minister Dhan-Dhaanya Krishi Yojana’ in partnership with states covering 100 districts to increase productivity, adopt crop diversification, augment post-harvest storage, improve irrigation facilities, and facilitate availability of long-term and short-term credit.

The goal is to generate ample opportunities in rural areas, with focus on rural women, young farmers, rural youth, marginal and small farmers, and landless families.

Union Budget 2025: MSME

MSMEs are the second power engine for development as they constitute 45% of our exports. To help MSMEs achieve higher efficiencies of scale, technological upgradation and better access to capital. The investment and turnover limits for classification of all MSMEs were enhanced to 2.5 and 2 times, respectively. Further, steps to enhance credit availability with guarantee cover have also been announced.

The FM also announced the launch of a new scheme for 5 lakh women, Scheduled Castes and Scheduled Tribes first-time entrepreneurs. This will provide term loans up to Rs. 2 crore during the next 5 years.

Union Budget 2025: Fiscal Consolidation

Government endeavours to keep the fiscal deficit each year such that the Central Government debt remains on a declining path as a percentage of the GDP and the detailed roadmap for the next 6 years has been detailed in the FRBM statement.

FM stated that the Revised Estimate 2024-25 of fiscal deficit is 4.8% of GDP, while the Budget Estimates 2025-26 is estimated to be 4.4 per cent of GDP.

Union Budget 2025: Income Tax

Union Budget 2025, tried to give big relief to the middle class and salaried people. The Tax Slabs on New Tax Regime are discussed below. 

Zero to Rs 4,00,000— No Tax

Rs 4,00,000 to Rs 8,00,000---5%

Rs 8,00,0001 to Rs 12,00,000---10%

Rs 12,00,001 to Rs 16 lakh ---15%

Rs 16,00,001 to Rs 20 lakh ---20%

Rs 20,00,001 to Rs 24 lakh -- 25%

Above Rs 24 lakh---30% 

Conclusion

In order to increase middle-class consumption, the Union Budget 2025 proposes large income tax reductions. Increasing capital expenditures for infrastructure development is another priority of the budget. In order to achieve balanced economic development and fiscal consolidation, it aims to reduce the budget deficit to 4.4% of GDP.

Also Read | Union Budget 2025 Expectations: What’s There for Defence and Tourism?