GDP Growth Target: Projected at 7.5% for FY 2025-26, indicating a strong post-pandemic recovery.
Fiscal Deficit: Estimated at 4.4% of GDP, aligning with long-term fiscal consolidation goals.
Disinvestment Target: ₹1.1 lakh crore set for privatization of public sector enterprises.
Inflation Management: Measures include strengthening food supply chains and rationalizing import duties.
Direct Taxes
Personal Income Tax Changes:
Basic exemption limit increased to ₹3.5 lakh.
Standard deduction raised to ₹75,000 for salaried individuals.
Corporate Tax:
Maintained at 22% for domestic companies.
15% concessional tax rate for new manufacturing companies extended by one year.
Incentives for Startups:
Tax holiday for startups extended till 2027.
Capital gains exemptions increased for startup investments.
Indirect Taxes
GST Reforms:
Simplification of GST compliance norms.
Uniform tax rates across various sectors.
Customs Duty Rationalization:
Reduction on raw materials for key industries.
Higher duties on non-essential luxury imports.
Investment in National Infrastructure Pipeline (NIP): ₹100 lakh crore allocated for roads, railways, ports, and urban development.
Railway Modernization: ₹2.4 lakh crore allocated for new high-speed trains, electrification, and safety measures.
Smart Cities & Urban Transformation: Increased funds for housing, public transport, and waste management.
PM Gati Shakti Plan: Enhancing logistics and connectivity for industrial corridors.
PM-KISAN Scheme Expansion: Increased direct benefit transfer to ₹8,000 per year.
Agricultural Credit: ₹20 lakh crore allocated for farmers through Kisan Credit Cards (KCC).
MSP (Minimum Support Price) Hike: Ensuring better income security for farmers.
Irrigation & Water Conservation: ₹15,000 crore allocated for PM Krishi Sinchayee Yojana.
FPO (Farmer Producer Organizations) Promotion: Special financial aid for 10,000 FPOs to strengthen the agri-supply chain.
MGNREGA Allocation: ₹1 lakh crore for rural employment.
Skill India & Employment Schemes: Expansion of vocational training programs.
Affordable Housing: ₹50,000 crore for Pradhan Mantri Awas Yojana.
Health Sector Boost:
₹80,000 crore for Ayushman Bharat expansion.
Strengthening of primary healthcare centers in rural areas.
National Education Policy (NEP) Implementation: Increased budget for school and higher education.
PM Research Fellowships: ₹7,000 crore allocated for research in science and technology.
Digital University & Online Learning: Strengthening of e-learning platforms and digital literacy programs.
5G Network Expansion: Incentives for telecom firms to accelerate rollout.
Artificial Intelligence & Robotics: ₹10,000 crore allocated for AI-driven innovations.
Crypto & Digital Asset Regulation: Clear tax framework introduced.
Cybersecurity Initiatives: Strengthening of digital security infrastructure.
Renewable Energy Investment: ₹20,000 crore for solar, wind, and green hydrogen projects.
Electric Vehicles (EVs) Boost: Incentives for EV manufacturing and charging infrastructure.
Water Conservation & Clean Ganga Mission: Increased funding for sustainable water management.
Carbon Credits & ESG Initiatives: New market framework for carbon trading.
The Union Budget 2025-26 focuses on sustainable economic growth, infrastructure, employment, and digital innovation. It balances fiscal discipline with developmental goals, making it a crucial topic for UPSC aspirants. This summary provides a structured approach to understanding budgetary allocations, policies, and their implications on governance and national progress.
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