The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman on February 1, 2025, outlines a comprehensive strategy to stimulate economic growth, enhance the financial well-being of the middle class, and promote inclusive development across various sectors. Below are the key highlights:
1. Income Tax Reforms
- Increased Tax Exemption Limit: The tax-free income threshold has been raised to ₹1.2 million per annum, aiming to boost household consumption, savings, and investment.
- Revised Tax Slabs: Adjustments in tax slabs have been implemented to provide relief to taxpayers, particularly benefiting the middle-income group.
2. Fiscal Management
- Fiscal Deficit Target: The government has set a fiscal deficit target of 4.4% of GDP for the fiscal year, reflecting a commitment to fiscal prudence while accommodating growth-oriented expenditures.
3. Agriculture and Rural Development
- High-Yield Crop Program: A new initiative targeting 100 districts with low productivity has been launched to enhance agricultural output and support farmers.
- Subsidized Credit for Farmers: The budget includes provisions to increase subsidized credit access for farmers, aiming to bolster the agricultural sector.
4. Support for Micro, Small, and Medium Enterprises (MSMEs)
- Enhanced Credit Support: The budget proposes increased credit support for MSMEs to promote entrepreneurship and job creation.
5. Infrastructure and Urban Development
- Capital Expenditure Increase: A significant increase in capital spending has been announced, focusing on infrastructure projects to stimulate economic growth.
- Urban Development Initiatives: The budget outlines plans for urban development, including investments in smart cities and urban infrastructure.
6. Energy Sector Initiatives
- Nuclear Energy Mission: A new mission aims to achieve 100 GW of nuclear power by 2047, contributing to energy security and sustainability.
7. Social Welfare and Inclusion
- Support for Gig Economy Workers: Measures have been introduced to formalize gig economy workers, improving their access to healthcare and welfare initiatives.
- Programs for Women and Marginalized Communities: The budget includes initiatives to support women and marginalized communities, promoting inclusive growth.
8. Foreign Direct Investment (FDI) Reforms
- Insurance Sector: The FDI limit in the insurance sector has been raised to 100%, encouraging greater foreign investment.
The Union Budget 2025 reflects the government’s commitment to fostering economic resilience, supporting the middle class, and promoting inclusive development across various sectors.
