The Union Government has unveiled the Budget 2025-26, focusing on economic growth, job creation, social welfare, and infrastructure development. The budget lays out a roadmap for "Viksit Bharat" (Developed India) with a strong emphasis on reforms, inclusivity, and technological advancements.
Boost for Agriculture and Rural Development
To support farmers and enhance agricultural productivity, the government has introduced the National Mission on High Yielding Seeds and a five-year Cotton Productivity Mission. The Prime Minister Dhan-Dhaanya Krishi Yojana will develop 100 agri districts, benefiting around 1.7 crore farmers. Additionally, the government will provide enhanced credit through Kisan Credit Cards (KCC) for 7.7 crore farmers, fishermen, and dairy farmers.
A Makhana Board will be set up in Bihar to improve production and marketing, while a six-year Pulses Mission will focus on developing climate-resilient seeds and enhancing protein content in key crops.
Support for MSMEs and Entrepreneurs
To empower small businesses, the budget introduces a revised classification for MSMEs, allowing increased investments and turnover limits. A Credit Card for Micro Enterprises with a ₹5 lakh limit will be issued to 10 lakh businesses in the first year. Additionally, a scheme for first-time entrepreneurs, including women and marginalized communities, will provide loans up to ₹2 crore.
For job creation, the government has launched a Focus Product Scheme for the leather and footwear sectors, expected to generate 22 lakh jobs. The toy industry will also receive support for skill development and manufacturing.
Education and Healthcare Reforms
The budget prioritizes human resource development with major investments in education and healthcare. 50,000 Atal Tinkering Labs will be set up in government schools over five years, along with broadband connectivity for all rural schools and primary health centers.
A Centre of Excellence in Artificial Intelligence for education will be established with ₹500 crore. Additionally, 10,000 medical seats will be added, with a long-term goal of 75,000 new seats over five years. The government also plans to set up Day Care Cancer Centers in all district hospitals.
Infrastructure and Urban Development
The government has allocated ₹1 lakh crore for the Urban Challenge Fund to develop cities as growth hubs. The Jal Jeevan Mission will be extended until 2028 to ensure 100% clean water coverage.
A ₹10 lakh crore Asset Monetization Plan has been launched to invest in new projects, while ₹1.5 lakh crore will be provided as interest-free loans to states for infrastructure development.
The aviation sector will see expansion under the UDAN scheme, with 120 new regional destinations planned. A ₹25,000 crore Maritime Development Fund will support long-term financing in the sector.
Economic Reforms and Financial Sector Growth
To encourage private sector investment, the government has announced reforms in the insurance sector, raising the FDI limit from 74% to 100%. A Partial Credit Enhancement Facility will be introduced for corporate bonds in infrastructure.
The Jan Vishwas Bill 2.0 aims to decriminalize over 100 provisions in various laws, simplifying business regulations. The tax structure has also been rationalized, with a new Income Tax Bill expected to be introduced.
Personal Income Tax Benefits
Middle-class taxpayers will benefit from several tax reforms, including:
Increased tax deduction for senior citizens from ₹50,000 to ₹1 lakh.
TDS on rent threshold increased from ₹2.4 lakh to ₹6 lakh.
Updated tax return filing period extended from two to four years.
Investment in Research, Technology, and Exports
A PM Research Fellowship will provide 10,000 fellowships for technological research in IITs and IISc. The National Geospatial Mission will modernize land records and infrastructure planning.
The government is allocating ₹20,000 crore for a private sector-driven Research & Development initiative. The BharatTradeNet platform will be launched to digitize international trade, and an Export Promotion Mission will support MSMEs in tackling non-tariff barriers.
The Budget 2025-26 is focused on inclusive development, economic growth, and social welfare. By addressing key sectors like agriculture, MSMEs, education, healthcare, and infrastructure, the government aims to boost India's progress towards becoming a developed nation. (PR)