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Budget 2025 Photograph: (Budget 2025)
Budget 2025-26 of the Union created strategies that focus on enhancing the conditions for poor citizens (Garib) alongside young people (Yuva), farmers (Annadaata), and women (Nari). During the budget presentation, Finance Minister Nirmala Sitharaman implemented strong structural reforms to advance economic development and provide tax-beneficial measures, medical care facilities, and support for small businesses.
Key Highlights:
- Tax & Agriculture Reforms: Budgetary changes aim to enhance tax structures and agricultural policies for economic stability.
- MSME & Healthcare Support: Special initiatives focus on strengthening Micro, Small, and Medium Enterprises (MSMEs) and improving healthcare infrastructure.
- Infrastructure Development: Increased investments in infrastructure to drive long-term economic growth.
- Employment & Social Welfare: Measures designed to create jobs and improve social welfare programs.
- Economic Expansion: The combined impact of these reforms is expected to accelerate economic growth and sustainability.
This budget provides several benefits to multiple sectors including zero taxes on income below Rs 12 lakh along with enhanced credit possibilities for MSMEs and medical services for digital workers.
Major Tax Reforms & Tariff Updates
New Income Tax Slabs
Tax relief has grown substantially under the new system because the income tax exemption threshold reached Rs 12.75 lakh. The introduced tax reform simultaneously raises the savings of middle-class citizens while growing their disposable income to drive total consumption.
Other Key Tax Reforms
- ITR Filing Window Received A Four-Year Extension Because The Update Period was Enhanced To Span Four Years From The Current Two.
- Rental income recipients can benefit from the increased TDS threshold at Rs 6 lakh instead of Rs 2.4 lakh.
- Senior citizens now benefit from increased interest deduction allowances which have risen to a maximum of Rs 1 lakh from the previous limit of Rs 50,000.
Custom Duty Revisions
The new policy makes 36 life-saving medications available to patients at zero duty costs which minimizes their healthcare expenses.
The government has reduced import duties for every aspect of green energy including EV battery components along with renewable energy materials.
Agriculture & Farmer Welfare
PM Dhan Dhanya Krishi Yojana
The newest five-year scheme will expand irrigation development across 100 districts to provide better water resources for farmers.
Cotton & Pulses Productivity Boost
Cotton & Pulses Productivity Boost Advanced technologies within the Mission for Cotton Productivity will serve to enhance crop yield. India aims to achieve independence from imported pulse products through its self-reliance plan.
MSME & Startup Support Measures Credit & Loan Expansion
- The maximum amount of financing for MSMEs has been elevated to Rs 10 crore. A unique credit card system designed for micro-enterprises will come into implementation.
- Boost for Entrepreneurs The funding program provides RS 2 crore loans to SC/ST and women entrepreneurs through its new scheme.
- Education & Skilling for the Future AI & Technology in Education The establishment of three AI Centers of Excellence requiring a Rs 500 crore budget will begin.
- IITs will receive expanded infrastructure that will allow them to accept additional students exceeding 6,500 students each.
- Youth Skilling & Employment A training program aimed at 20 lakh youth will offer vocational education. A total of 1 crore students will obtain internships that include a Rs 5,000 compensation.
- Healthcare & Social Welfare Strengthening Cancer Treatment The Nationwide establishment of 200 facilities dedicated to daycare cancer treatment is planned by the government.
- Healthcare for Gig Workers The healthcare plan known as PM Jan Arogya Yojana will now extend coverage to the gig worker community thus improving their access to medical facilities.
Infrastructure & Smart City Development Boosting Urban Growth
The infrastructure development plan will receive a total investment of Rs 10 lakh crore. Indian smart city development will receive funding support through the Urban Challenge Fund which has set aside Rs 1 lakh crore for its initiatives.
Manufacturing & Industrial Growth The National Manufacturing Mission aims to focus primarily on clean technology together with renewable energy operations. According to the recently approved plan, a National Food Processing Institute will establish its base in Bihar.
Conclusion
The budgetary reforms for taxes and agriculture parallel the initiatives to boost MSMEs and healthcare together with infrastructure development. The implemented measures present the potential to boost economic expansion alongside better employment generation and social welfare improvements.