Budget 2025-26 Highlights: Key Takeaways

Every year on February 1st, as the nation tunes into the news channels and sets aside their daily tasks, a momentous event unfolds: Budget Day. This day has become synonymous with the release of new fiscal policies and reforms that impact every citizen—from the common man to large-scale industries. Understanding the budget is crucial because it not only shapes the economic landscape but also affects our personal finances, business decisions, and overall growth of the country. In this blog post, we’ll explore the key highlights of the Budget 2025-26, including important personal income tax reforms, and see how these initiatives aim to propel India towards a self-reliant and developed future.

Boosting Agriculture & Rural Economy

  • National Mission on High Yielding Seeds: Focusing on developing climate-resilient and pest-resistant crops.
  • Makhana Board in Bihar: Enhancing production, processing, and marketing strategies.
  • PM Dhan-Dhaanya Krishi Yojana: Aiming to develop Agri-focused districts for holistic rural growth.
  • Cotton Productivity Mission & Aatmanirbharta in Pulses: Initiatives to improve yield and sustainability.
  • Enhanced Credit through KCC: Providing short-term loans of up to ₹5 lakh to benefit 7.7 crore farmers.
Strengthening MSMEs & Entrepreneurship
  • Revised MSME Classification: Increased turnover limits to better support small and medium enterprises.
  • Customised Credit Cards for Micro Enterprises: Offering a ₹5 lakh limit to ease financial transactions.
  • New Scheme for First-Time Entrepreneurs: Supporting 5 lakh new entrants, including women and marginalized communities, with term loans up to ₹2 crore.
  • Labour-Intensive Sector Initiatives: Special schemes for sectors like footwear, leather, and toys to boost employment.
Investing in Education, Health & Social Welfare

  • Atal Tinkering Labs: Establishing 50,000 labs in government schools over the next 5 years to foster innovation.
  • Expansion of Medical Education: Adding 10,000 new seats, with a goal to reach 75,000 seats in the next 5 years.
  • Revamped PM SVANidhi: Enhancing credit facilities, including UPI-linked credit cards and capacity-building support.
  • Day Care Cancer Centres: Setting up in every district hospital to improve early diagnosis and treatment.


Infrastructure & Urban Development
  • Urban Challenge Fund: A ₹1 lakh crore initiative to implement smart city projects and redevelopment schemes.
  • Jal Jeevan Mission Extension: Pushing for 100% water coverage by extending the mission to 2028 with an increased outlay.
  • Maritime Development Fund: Establishing a corpus of ₹25,000 crore for long-term maritime financing.
  • UDAN Scheme Expansion: Enhancing regional connectivity with 120 new air destinations and a target of 4 crore passengers in the next 10 years.
Research, Innovation & Digital Transformation
  • ₹20,000 Crore R&D Initiative: Promoting private sector-led research and innovation.
  • National Geospatial Mission: Modernizing land records, urban planning, and infrastructure development.
  • Centre of Excellence in AI for Education: Allocating ₹500 crore for developing future-ready skills in artificial intelligence.
  • PM Research Fellowship: Awarding fellowships to 10,000 scholars in premier institutions like IITs and IISc.
Personal Income Tax Reforms & Financial Sector Reforms
  • Personal Income Tax Reforms:
    • Senior Citizens’ Benefits: The tax deduction limit for senior citizens has been doubled from ₹50,000 to ₹1 lakh, easing the financial burden on the elderly.
    • TDS on Rent: The threshold for TDS on rent has been increased from ₹2.4 lakh to ₹6 lakh, offering relief to both landlords and tenants.
    • Simplification & Certainty: New proposals under the upcoming Income Tax Bill aim to simplify procedures, provide greater tax certainty, and reduce litigation, benefiting middle-class taxpayers and businesses alike.
    • New Proposed Income Tax Slab Rates: The budget introduces revised slab rates aimed at simplifying the tax structure and reducing the tax burden on middle-class earners. These new rates are designed to lower liabilities for lower and middle-income groups while streamlining higher rates for increased equity in taxation.
With the proposed tax rates individuals will get benefits are as per the tables below:
  • Financial Sector Reforms:
    • Increased FDI in Insurance: The FDI limit has been raised from 74% to 100%, encouraging more private investment.
    • Revamped Central KYC Registry: A streamlined system set to roll out in 2025, aimed at improving compliance and efficiency in financial services.
    • Grameen Credit Score Framework: Designed to better serve the credit needs of rural populations and SHG members.
Export Promotion & Trade Growth
  • BharatTradeNet: A unified digital platform for seamless global trade documentation and financing.
  • Export Promotion Mission: Focused on facilitating easier access to export credit and integrating with global supply chains.
  • Air Cargo Warehousing: Upgrading infrastructure to support perishable exports and high-value horticulture produce.
Fiscal Management & Revenue Trends
  • Fiscal Deficit Target: Aiming to reduce the fiscal deficit to 4.4% of GDP, reflecting a commitment to fiscal discipline.
  • State Support: Provision of ₹1.5 lakh crore in interest-free loans to states for infrastructure development, contingent on regulatory reforms.
  • Customs Tariff Rationalization: Streamlining duties and cesses to boost industrial growth and ease the cost of doing business.
Conclusion

The Budget 2025-26 lays out a comprehensive roadmap for achieving inclusive growth and economic resilience. By investing in agriculture, MSMEs, education, and infrastructure, while simultaneously reforming the personal income tax framework and financial regulations, the government aims to create a future-ready India. As every February 1st reminds us, understanding these policies is key—not only for staying informed but also for making strategic personal and business decisions in an ever-evolving economic landscape.

Stay tuned and stay informed—the budget is not just a government announcement; it’s a blueprint for our collective future.