TIL Desk Union Budget 2025 :👉Finance Minister Nirmala Sitharaman has begun her Budget speech in Parliament.
Her Budget for the fiscal year starting April 2025 (FY2025-26) marks the 14th consecutive Budget under the Narendra Modi government since 2014, including two interim Budgets presented ahead of the general elections in 2019 and 2024.
She was appointed as the finance minister when Modi swept to power again in the 2019 election and presented her maiden Budget on July 5, 2019.
She used a red cloth folder enclosed with a string and emblazoned with the national emblem to carry the Budget documents.
Earlier, finance ministers in different governments, including her predecessors in the Modi government — Arun Jaitley and Piyush Goyal — used the standard Budget briefcase.
Before Sitharaman, a long-standing colonial tradition in connection with the Budget presentation was broken during the Atal Bihari Vajpayee government when the then finance minister Yashwant Sinha presented the Budget at 11 am rather than at the traditional time of 5 pm.
Since then, all the governments have been presenting the Budget at 11 am.
- The budget will usher in transformative reforms, Finance Minister Nirmala Sitharaman said, and cover six domains: Taxation, power sector, urban development, mining, financial sector, and regulatory reforms.
- Goal is to create employment in rural areas so migration is an option, not compulsion, says Sitharaman.
- Government will launch a six-year mission for atmanirbharta in growth of pulses, says Sitharaman.
- A makhana board will be set up in Bihar, says FM
- Union Finance Minister Nirmala Sitharaman says, “Our economy is the fastest growing among all major economies. Our development track record for the past 10 years and structural reforms have drawn global attention. Confidence in India’s capability and potential has only grown in this period. We see the next 5 years as a unique opportunity to realise sabka vikas, stimulating balanced growth of all regions.”
- With 1.5 lakh rural post offices, 2.4 lakh dak sevaks will be repositioned to act as rural catalysts. India Post to be transformed as a large logistics operation, says FM.
- Finance Minister Sitharaman has announced new classification criteria for MSMEs.
- The investment limit for MSME classification to be made 2.5 times, and turnover limits for MSME classification to be doubled, she said.
- India to be global hub for toys, says Sitharaman, and will represent the Made in India brand.
- The finance minister announces PM Dhan Dhyan Krishi Yojana, covering 100 districts with low yields, modern crop intensity and below average credit parameters.
- The PM Dhan Dhyan Krishi Yojan will benefit 1.7 crore farmers, Sitharaman said.
- Viksit Bharat will have zero poverty, quality education, high-quality, affordable and comprehensive healthcare, says FM Sitharaman.
- Government to enhance credit guarantee cover for MSMEs to improve credit access, and will enhance limit for interest subvention scheme for Kisan Credit Card from Rs 3 lakh to Rs 5 lakh, Finance Minister Sitharaman announced.
- The government will also introduce customised credit cards with Rs 5 lakh limit for micro-enterprises, she said
- Union Finance Minister Nirmala Sitharaman says, “PM Dhan Dhaanya Krishi Yojana — developing agri districts program… Our government will undertake a PM Dhan Dhaanya Krishi Yojana in partnership with states. Through the convergence of existing schemes and specialised measures, the program will cover 100 districts with low productivity, moderate crop intensity and below-average credit parameters. It aims to enhance cultural productivity…”
The Budget continues the government’s efforts to:
a) Accelerate Growth
b) Inclusive Development
c) Private Sector Investments
d) Uplift Household sentiments
e) Enhance the spending power of India’s rising middle-class, Finance Minister Sitharaman said.
- Broadband connectivity to be provided to all government secondary schools and primary healthcare centres, announces Finance Minister Sitharaman.
- National Institute of Food Technology, Entrepreneurship and Management to be set up in Bihar to provide a strong fillip to food processing activities in the entire Eastern region.
- The government had announced artificial intelligence for agriculture, health, sustainable cities. Now a centre of excellence for AI in education to be set up with outlay of Rs 500 cr, Finance Minister Sitharaman announced.
- Charting development across various sectors, a modified UDAN scheme to be launched to enhance regional connectivity to 120 new destinations and carry 4 crore passengers in next 10 years, Finance Minister Sitharaman announced.
- A maritime development fund with a corpus of Rs. 25,000 crore to be set up.
- The Jal Jeevan Mission to be extended till 2028, she said.
- Finance Minister Nirmala Sitharaman on Saturday said a focused scheme will be launched for the footwear and leather sectors while steps will be initiated to make India a global toy manufacturing hub.
- The government will also launch a mission to support clean technology manufacturing activities, she said while presenting the Union Budget for 2025-26.
- She said investment as third engine encompasses investing in people, innovation, and economy.
- The government will launch a Rs 2-crore term loan for 5 lakh first-time women, SC and ST entrepreneurs, Finance Minister Nirmala Sitharaman said on Saturday.
- Presenting the Union Budget for 2025-26, the finance minister also said a manufacturing mission will be set up for SME and large industries.
- Besides, the government will undertake facilitation measures to enhance productivity of labour-intensive sectors, Sitharaman said.
- The credit guarantee cover will be doubled to Rs 20 crore, guarantee fee moderated to 1 per cent, she added.
- Finance Minister Nirmala Sitharaman on Saturday announced enhancing the limit for interest subvention scheme for Kisan Credit Cards from Rs 3 lakh to Rs 5 lakh.
- Presenting the 14th consecutive Budget under the Narendra Modi government since 2014, Sitharaman also said the government will enhance credit guarantee cover for MSMEs to improve their credit access.
- Besides, the government will introduce customised credit cards with Rs 5 lakh limit for micro-enterprises. She said the Kisan Credit Cards would facilitate short-term loans for 7.7 crore farmers, fishermen, and dairy farmers.
- She added that term loan of up to Rs 20 crore will be provided to well-run export-oriented MSMEs.100 percent FDI has been approved for the insurance sector, and this will be allowed for companies that invest the entire premium collected in India, Finance Minister Sitharaman has announced.
- Finance Minister Nirmala Sitharaman on Saturday announced another round of Fund of Funds for Startups scheme with a corpus of Rs 10,000 crore to promote growth of budding entrepreneurs.
- The announcement assumes significance as the government is focusing on promoting innovation through startups.
- The Department for Promotion of Industry and Internal Trade (DPIIT) has recognised over 1.5 lakh startups so far.
- An action plan for Startup India was unveiled on January 16, 2016. In the same year, Fund of Funds for Startups (FFS) scheme was launched with a corpus of Rs 10,000 crore, to meet the funding needs of startups.
- DPIIT is the monitoring agency and Small Industries Development Bank of India (SIDBI) is the operating agency for FFS.
- The total corpus of Rs 10,000 crore was envisaged to be provided over the 14th and 15th Finance Commission cycles based on progress of the scheme and availability of funds.
- It has not only made capital available for startups at early stage, seed stage and growth stage but also played a catalytic role in terms of facilitating raising domestic capital, reducing dependence on foreign capital and encouraging home-grown and new venture capital funds.
- Top 50 tourist destination sites in the country to be developed in partnership with states through a challenge mode.
- MUDRA loans for homestays to be provided Special focus on destinations related to the life and times of Lord Buddha.
- Medical Tourism and Heal in India to be promoted in partnership with the private sector
- Government to introduce new Income Tax bill next week in Parliament to take forward ‘trust first, scrutinise later’ concept, Finance Minister Sitharaman announced in Parliament.
- Finance Minister Nirmala Sitharaman on Saturday said the government will arrange identity cards and registration on the e-Shram portal to assist 1 crore gig workers.
- Presenting the Union Budget 2025-26, the finance minister also said a scheme for the socio-economic upliftment of urban workers will be implemented.
- “…Gig workers of online platforms provide great dynamism to the ‘New Age’ services economy. Recognising their contribution, our government will arrange for their identity cards and registration on the e-Shram portal,” she said.
- Such workers will be provided health care facilities under the Pradhan Mantri Jan Arogya Yojana (PM-JAY) and this measure is likely to assist nearly one crore workers, Sitharaman added.
- In her presentation, the finance minister also said that by next year, 10,000 seats will be added in medical colleges and hospitals while another 75,000 seats will be added in the next five years.
- The government will also facilitate the setting up of daycare cancer centres in all district hospitals in the next three years.
- Besides, the infrastructure ministries will come up with a 3-year pipeline of projects to be implemented in PPP (public-private partnership) mode, Sitharaman said.
- 36 lifesaving drugs and medicines to be added to the list of medicines fully exempted from basic customs duty.
- 37 more medicines and 13 new patient assistance programmes to be fully exempted from basic customs duty (where they are supplied free of cost to patients)
- The fiscal deficit for FY25 has been pegged at 4.8 per cent of GDP and at 4.4 per cent for FY26, Finance Minister Nirmala Sitharaman said on Saturday.
- Presenting the Budget 2025-26, she said net market borrowings are estimated at Rs 11.54 lakh crore for next fiscal year.
- The finance minister also said the government will set up a high-level committee for regulatory reforms on all non-financial sectors.
- She also said NaBFID (National Bank for Financing Infrastructure and Development) will set up partial credit enhancement facility for corporate bonds. Investment friendliness index of states will be launched this year, Sitharaman further said.
- Personal income tax reforms with special focus on middle class, announced Finance Minister Sitharaman.
- Rationalisation of TCS, voluntary compliance, TDS to be rationalised by reducing rates, the threshold amount to be reduced, she said.
- As part of this, TDS limits have been doubled from Rs 50,000 to Rs 1 lakh for senior citizens, she said, and the TDS on rent was being increased to Rs 6 lakhs. The tax collection at source threshold under RBI’s liberalised scheme has been increased to Rs 10 lakh from Rs 7 lakh.
- Finance Minister Nirmala Sitharaman has announced that no income tax will be levied on income of up Rs 12 lakh under the new tax regime.
- The ‘nil tax’ slab up to Rs 12.00 lakh (Rs 12.75 lakh for salaried tax payers with standard deduction of 75,000).
- Slabs and rates being changed across the board to benefit all tax-payers.
- New structure to substantially reduce taxes of middle class and leave more money in their hands, boosting household consumption, savings and investment.
- Finance Minister Nirmala Sitharaman on Saturday announced extension of the time limit for filing updated returns for any assessment year.
- The time limit is proposed to be extended from the current two years to four years.
- Presenting the 14th consecutive Budget under the Narendra Modi government since 2014, Sitharaman also proposed the exemption of TCS (tax collected at source) for remittances for education purposes in cases where education loan is taken from specified financial institutions.
- She added that 33,000 taxpayers have availed Vivad Se Vishwas 2.0 scheme to settle direct tax disputes.
- The limit for tax deduction on interest income would be doubled to Rs 1 lakh for senior citizens, and the limit for TDS on rent is proposed to be increased to Rs 6 lakh.
- Besides, the budget extends the period of incorporation by five years for startups to avail of tax benefits.
