UNION BUDGET 2025-26

PRELIMS BITS

The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman on February 1, 2025, focuses on economic growth driven by agriculture, MSMEs, investments, and exports. The budget aims for a developed India by 2047 with key reforms for inclusivity and sustainability.

Agriculture Initiatives

• Self-Sufficiency in Pulses: A 6-year mission for self-reliance in pulses, focusing on tur, urad, and masoor.
• Makhana Cultivation Boost: A Makhana Board for Bihar, benefiting 10 lakh people.
• High-Yielding Seeds Mission: R&D for high-yield, climate-resilient seeds.
• PM Dhan Dhanya Krishi Yojana: Supports 1.7 crore farmers with improved production, irrigation, and storage.

MSME Support

• Higher Investment Limits: MSME classification investment limits increased.
• Credit Access: Enhanced credit for micro, small enterprises and startups.
• Women and SC/ST Entrepreneurs: ₹2 crore loans for first-time business owners.
• National Manufacturing Mission: Focus on clean-tech manufacturing like EV batteries and solar panels.

Investments and Infrastructure

• Jal Jeevan Mission: 100% water supply coverage by 2028.
• Nuclear Energy Mission: 100 GW nuclear capacity by 2047.
• Urban Challenge Fund: ₹1 lakh crore fund for urban growth and redevelopment.

Export Promotion

• Export Promotion Mission: ₹2,250 crore allocated to boost exports and support MSME exporters.
• BharatTradeNet: Unified platform for trade documentation.

Tax Reforms

• Income Tax Exemption: No tax for income up to ₹12 lakh.
• Tax Savings: Rebate of ₹60,000 and increased tax slab thresholds.
• TDS on Rent: TDS applies only for rents above ₹6 lakh annually.

Social Sector Allocation

• Education: ₹1.28 lakh crore for education.
• Health: Increased allocation of ₹98,311 crore.
• Social Services: Total spending to rise to ₹25.7 lakh crore in FY25.

Gender Budgeting

• Increased Allocation for Women: ₹4.49 lakh crore for women’s schemes, a 37% increase.
• Challenges: Ambiguities in reporting and allocation for women-focused schemes. Gender audits recommended for better implementation.