The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman on February 1, 2025, introduces several key reforms aimed at stimulating economic growth, enhancing manufacturing capabilities, and boosting consumption. Here are the major highlights:
1. Tax Reforms:
Income Tax Relief: The budget proposes significant tax cuts for the middle class. Individuals with annual incomes up to ₹12 lakh will now pay no income tax, effectively increasing disposable income and encouraging consumption.
Tax Slab Adjustments: The tax slabs have been revised to reduce the tax burden across various income brackets, aiming to leave more money in the hands of taxpayers.
2. Support for MSMEs and Startups:
Credit Enhancement: The budget focuses on boosting credit availability for Micro, Small, and Medium Enterprises (MSMEs) and startups, facilitating their growth and contribution to the economy.
Dedicated Fund: A new fund has been established to support MSMEs, providing them with the necessary capital to expand operations and innovate.
3. Infrastructure and Manufacturing:
Manufacturing Boost: The government has introduced measures to enhance manufacturing capabilities, including incentives for domestic production and initiatives to attract foreign investment.
Infrastructure Development: Significant investments are planned for infrastructure projects, aiming to improve connectivity and support economic activities.
4. Agriculture and Rural Development:
Kisan Credit Card Enhancement: The budget proposes increased limits for Kisan Credit Cards, providing farmers with greater access to credit for agricultural activities.
PM Dhan Dhaanya Krishi Yojana: A new scheme has been launched to support farmers, focusing on enhancing agricultural productivity and income.
5. Tourism and Urban Development:
Tourism Promotion: The budget outlines plans to develop the top 50 tourist destinations in the country in partnership with states, aiming to boost tourism and related industries.
Urban Infrastructure: Investments are planned to improve urban infrastructure, including housing, sanitation, and public transportation, to enhance the quality of life in cities.
6. Monetary Policy:
- Interest Rate Cuts: The Reserve Bank of India is expected to cut interest rates for the first time since May 2020, aiming to stimulate economic growth.
These measures reflect the government's commitment to fostering economic growth, supporting key sectors, and improving the standard of living for citizens.