The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, is the final full-fledged budget before the 2026 Lok Sabha Elections. This budget aims to accelerate India’s progress towards Viksit Bharat 2047, focusing on infrastructure, MSMEs, employment generation, digital transformation, and green energy. Let’s dive deep into the key highlights and analyze the impact on different sectors and the economy.
1. Budget 2025-26 Overview
- Total Budget Outlay: ₹48 lakh crore (8% increase from last year)
- GDP Growth Target: 7%
- Fiscal Deficit Target: 5.3% of GDP
- Major Focus Areas: Infrastructure, MSMEs, Digital India, Green Energy, and Employment
2. Direct & Indirect Tax Changes
Income Tax
- No changes in personal income tax slabs (old and new regime remains the same)
- Standard deduction for senior citizens increased to ₹60,000
- Startups & MSMEs tax rebate extended till 2028
Corporate Tax
- MSMEs’ corporate tax remains at 15%
- Manufacturing & Green Energy Startups get a 5-year tax holiday
GST & Custom Duty Updates
- Mobile phones & electronic parts become cheaper due to reduced custom duty
- Luxury cars, gold, cigarettes, and alcohol see a duty hike
- Essential medicines, electric vehicles, and solar panels get GST exemptions
3. Infrastructure & Transportation Developments
- Indian Railways: ₹3 lakh crore allocation, 200 new Vande Bharat Express trains
- Highways & Smart Cities: ₹5 lakh crore investment in expressways & urban development
- Aviation: 50 new airport upgrades under the regional connectivity scheme
- Metro Expansion: Major funding for new metro projects
4. Agriculture & Farmers’ Benefits
- PM Kisan Samman Nidhi: Increased from ₹8,000 crore to ₹10,000 crore
- Zero Budget & Organic Farming to get government incentives
- 50% subsidy on solar-powered irrigation pumps
- Special incentives for agricultural exports
5. Employment & Education Initiatives
Education & Skill Development
- 500 new Skill Development Centers to be set up
- ₹20,000 crore allocated for AI, Blockchain, Robotics & Future Tech training
- School & Higher Education Fund increased
Employment & Startup Support
- Production-Linked Incentive (PLI) Scheme expansion
- Increased funding for Startups & MSMEs
- 10 lakh new jobs to be created under government initiatives
6. Digital India & Technological Advancements
- ₹50,000 crore allocated for 5G expansion & AI-based research
- Strengthening Digital Public Infrastructure & e-Governance
- New regulations for Crypto & Blockchain technology
7. Green Energy & Sustainability Push
- ₹1 lakh crore investment in Solar & Wind Energy projects
- Continued subsidies for Electric Vehicles (EVs)
- ₹30,000 crore for Hydrogen Energy Mission
8. Overall Impact on Economy
This budget is growth-oriented and futuristic, focusing heavily on infrastructure, green energy, and employment generation. However, middle-class taxpayers may feel left out as no major relief was provided in income tax slabs. Long-term economic growth looks promising with sustained public investments, technology adoption, and startup incentives.
Conclusion
The Union Budget 2025-26 lays down a strong foundation for India’s future. While businesses, MSMEs, and startups get major support, the common taxpayer might not see immediate benefits. Nonetheless, the push for infrastructure, employment, and green energy will contribute to a stronger, more self-reliant India.
What are your thoughts on this budget? Do you think it meets expectations? Share your views in the comments!
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