Indian Union Budget 2025

 Indian Union Budget 2025 

The Indian Union Budget for the fiscal year 2025-26, scheduled for presentation on February 1, 2025, is anticipated to focus on stimulating economic growth, enhancing infrastructure, and providing relief to the middle class. Here's an overview of the expected budgetary measures and their implications:

Budget Size and Fiscal Deficit

The government is expected to increase capital expenditure to approximately ₹11-11.5 lakh crore in FY26, up from ₹10 lakh crore in FY25. This increase aims to boost infrastructure development and stimulate economic growth. The fiscal deficit target is projected to be reduced to 4.3-4.4% of GDP in FY26, down from 4.8-4.9% in FY25, reflecting a commitment to fiscal consolidation.

Key Reforms and Initiatives

• Income Tax Relief: The budget is expected to introduce income tax cuts for individuals earning up to ₹15 lakh annually. This measure aims to alleviate the financial burden on the middle class and stimulate consumption.

• Production-Linked Incentive (PLI) Scheme for Electronics: A ₹25,000 crore PLI scheme is anticipated to boost domestic manufacturing of electronic components, reducing reliance on imports and fostering growth in the electronics sector.

• Infrastructure Investment: The government plans to invest significantly in infrastructure projects, including roads, railways, and renewable energy, to drive economic growth and create jobs.

Beneficiaries

• Middle-Class Taxpayers: The proposed income tax cuts are expected to benefit millions of middle-class taxpayers, particularly urban residents facing high living costs.

• Electronics Manufacturing Sector: The PLI scheme is set to benefit domestic manufacturers of electronic components, fostering growth and reducing import dependence.

• Infrastructure and Construction Industries: Increased capital expenditure on infrastructure projects will benefit companies involved in construction, engineering, and related sectors.

New Tax Formats

The budget is expected to introduce a revised tax structure, including:

• Reduced Tax Rates: Potential reductions in income tax rates for individuals earning up to ₹15 lakh annually.

• Enhanced Deductions: Increased limits under sections 80C and 80D to encourage savings and investments.

• Standard Deduction Increase: An increase in the standard deduction for salaried employees to provide additional tax relief.

These measures aim to simplify the tax system, provide relief to taxpayers, and stimulate economic activity.

Overall, the Union Budget 2025-26 is expected to balance fiscal consolidation with growth-oriented measures, focusing on infrastructure development, tax relief for the middle class, and support for key industries to drive economic growth and job creation.

The Indian Union Budget for the fiscal year 2025-26, scheduled for presentation on February 1, 2025, is anticipated to introduce several measures aimed at benefiting various segments of society, including the middle class, farmers, women, students, and senior citizens. Here's an overview of the expected provisions:

1. Middle Class:

• Income Tax Relief: The budget is expected to introduce income tax cuts for individuals earning up to ₹15 lakh annually. This measure aims to alleviate the financial burden on the middle class and stimulate consumption.

• Enhanced Deductions: Increased limits under sections 80C and 80D to encourage savings and investments. This initiative is designed to provide additional tax relief to the middle class.

2. Farmers:

• Agricultural Support: A provision of ₹1.52 lakh crore has been announced for agriculture and allied sectors this year. This funding aims to enhance productivity and resilience in agriculture.

• Natural Farming Initiatives: In the next two years, 1 crore farmers across the country will be initiated into natural farming practices, promoting sustainable agriculture.

• High-Yielding Crop Varieties: The release of 109 high-yielding and climate-resilient varieties of 32 field and horticulture crops is planned to improve agricultural productivity.

3. Women:

• Women-Led Development: The budget allocates more than ₹3 lakh crore for schemes benefiting women and girls, aiming to promote women-led development.

• Support for Women Entrepreneurs: Enhanced support for economic activities among marginalized groups, including women entrepreneurs, is emphasized to foster inclusive growth.

4. Students:

• Skill Development: The budget introduces schemes like Employment Linked Incentive and initiatives to boost skilling, focusing on training 20 lakh youth over a 5-year period and upgrading 1,000 Industrial Training Institutes.

• Educational Loans: Financial support for higher education and loans for skilling are announced to facilitate access to quality education and vocational training.

• Internship Opportunities: A comprehensive scheme for providing internship opportunities in 500 top companies to 1 crore youth over 5 years is planned to enhance employability.

5. Senior Citizens:

• Pension Reforms: A committee to review the New Pension Scheme (NPS) has been constituted to address relevant issues while maintaining fiscal prudence to protect common citizens.

• Financial Inclusion: Over 100 branches of India Post Payment Bank will be established in the North East region to enhance banking services, benefiting senior citizens in these areas.

These measures reflect the government's commitment to fostering inclusive growth and addressing the specific needs of various segments of society.

The Indian Union Budget for the fiscal year 2025-26, scheduled for presentation on February 1, 2025, is anticipated to introduce several measures aimed at benefiting various segments of society, including the middle class, farmers, women, students, and senior citizens. Here's an overview of the expected provisions:

1. Middle Class:

• Income Tax Relief: The budget is expected to introduce income tax cuts for individuals earning up to ₹15 lakh annually. This measure aims to alleviate the financial burden on the middle class and stimulate consumption.

• Enhanced Deductions: Increased limits under sections 80C and 80D to encourage savings and investments. This initiative is designed to provide additional tax relief to the middle class.

2. Farmers:

• Agricultural Support: A provision of ₹1.52 lakh crore has been announced for agriculture and allied sectors this year. This funding aims to enhance productivity and resilience in agriculture.

• Natural Farming Initiatives: In the next two years, 1 crore farmers across the country will be initiated into natural farming practices, promoting sustainable agriculture.

• High-Yielding Crop Varieties: The release of 109 high-yielding and climate-resilient varieties of 32 field and horticulture crops is planned to improve agricultural productivity.

3. Women:

• Women-Led Development: The budget allocates more than ₹3 lakh crore for schemes benefiting women and girls, aiming to promote women-led development.

• Support for Women Entrepreneurs: Enhanced support for economic activities among marginalized groups, including women entrepreneurs, is emphasized to foster inclusive growth.

4. Students:

• Skill Development: The budget introduces schemes like Employment Linked Incentive and initiatives to boost skilling, focusing on training 20 lakh youth over a 5-year period and upgrading 1,000 Industrial Training Institutes.

• Educational Loans: Financial support for higher education and loans for skilling are announced to facilitate access to quality education and vocational training.

• Internship Opportunities: A comprehensive scheme for providing internship opportunities in 500 top companies to 1 crore youth over 5 years is planned to enhance employability.

5. Senior Citizens:

• Pension Reforms: A committee to review the New Pension Scheme (NPS) has been constituted to address relevant issues while maintaining fiscal prudence to protect common citizens.

• Financial Inclusion: Over 100 branches of India Post Payment Bank will be established in the North East region to enhance banking services, benefiting senior citizens in these areas.

These measures reflect the government's commitment to fostering inclusive growth and addressing the specific needs of various segments of society.