Budget 2025-26 Highlights
Empowering Growth | Strengthening Bharat | Supporting Citizens

Agriculture & Rural Development

• PM Dhan-Dhaanya Krishi Yojana: 100 agri districts benefiting 1.7 crore farmers.

• Mission for Cotton Productivity: 5-year plan for better yield & sustainability.

• Makhana Board in Bihar to enhance production & marketing.

• Aatmanirbharta in Pulses: 6-year mission focusing on climate-resilient seeds, higher protein content & better storage.

MSME & Entrepreneurship

• Credit Cards for Micro Enterprises: Rs 5 lakh limit for Udyam-registered businesses.

• Scheme for First-time Entrepreneurs: Rs 2 crore term loan for 5 lakh new businesses.

• Revised MSME Classification: Higher turnover & investment limits for micro, small & medium enterprises.

• Footwear & Leather Sector Boost: Expected to create 22 lakh jobs & generate ?4 lakh crore turnover.

Education & Skilling

• 50,000 Atal Tinkering Labs in schools over 5 years.

• Broadband for All Rural Schools & PHCs.

• Rs 500 Cr Centre of Excellence in AI for education.

• Medical Education Expansion: 10,000 new MBBS seats, aiming for 75,000 in 5 years.

• PM Research Fellowship: 10,000 fellowships for IITs & IISc.

Urban & Infrastructure Development

• Jal Jeevan Mission Extended to 2028 for 100% water coverage.

• Rs. 1 Lakh Cr Urban Challenge Fund to develop cities as growth hubs.

• Rs. 1.5 Lakh Cr Interest-Free Loans to states for infrastructure development.

• Rs. 10 Lakh Cr Asset Monetization Plan to fund new projects.

Tourism & Connectivity

• UDAN Scheme Expansion: 120 new regional airports, 4 crore passengers in 10 years.

• MUDRA Loans for Homestays to boost rural tourism.

• Top 50 Tourist Sites to be developed with states.

• Easier E-Visas for international visitors.

Tax Reforms & Benefits

• Senior Citizens Tax Deduction Doubled: Rs. 50,000 ---> Rs. 1 Lakh.

• Tax Benefits for 2 Self-Occupied Properties (earlier only 1 was allowed).

• Updated Returns Time Limit Extended from 2 years to 4 years.

New Income Tax Slabs (New Regime)

• No Income Tax up to Rs. 12 lakh after rebates!

  • Rs 0 - Rs 4 lakh - No Tax

  • Rs 4 - Rs 8 lakh - 5%

  • Rs 8 - Rs 12 lakh - 10%

  • Rs 12 - Rs 16 lakh - 15%

  • Rs 16 - Rs 20 lakh - 20%

  • Rs 20 - Rs 24 lakh - 25%

  • Above Rs 24 lakh - 30%

 (Rebate up to Rs 80,000 available)

Direct & Indirect Taxes

• Tax Exemptions on 36 Lifesaving Medicines (for rare diseases & cancer).

• ‘Make in India’ Tax Benefits for electronics, textiles & EVs.

• Simplified GST & Tariff Structure to ease trade.

Economic Growth & Investments

• Rs 10 Lakh Cr Asset Monetization Plan for infrastructure.

• Rs 20,000 Cr Private Sector R&D Fund.

• Rs 25,000 Cr Maritime Development Fund for long-term financing.

• Rs 15,000 Cr SWAMIH Fund-2 to complete 1 lakh housing units.

Financial Sector & Ease of Doing Business

• FDI in Insurance Increased: 74% ---> 100%.

• Revamped Central KYC Registry for faster banking access.

• Faster Company Merger Approvals & regulatory simplifications.

• Grameen Credit Score to boost rural lending.

Fiscal Management & Deficit

• Fiscal Deficit Target: 4.4% of GDP.

• Total Transfers to States: ?25.6 Lakh Cr.

• Better Borrowing & Liabilities Management.

Where Does the Government Get Its Money?

• Borrowing & Liabilities - 24%

• Income Tax - 22%

• GST & Other Taxes - 18%

• Corporation Tax - 17%

• Non-Tax Receipts - 9%

• Excise Duties - 5%

• Customs Duty - 4%

• Non-Debt Capital Receipts - 1%

Where is the Money Spent?

• States’ Share of Taxes - 22%

• Central Sector Schemes - 16%

• Interest Payments - 20%

• Defence - 8%

• Subsidies - 6%

• Pensions - 4%

• Other Welfare & Infra - 24%

This budget is a strong step towards ‘Viksit Bharat’ with a focus on tax benefits, infrastructure, MSMEs, and social welfare.