Union Budget 2025: Key Highlights

On February 1, 2025, Finance Minister Nirmala Sitharaman presented the Union Budget, introducing several significant measures aimed at bolstering economic growth and providing relief to various sectors of society.

Income Tax Reforms

In a major relief to the middle class, the government has revised the income tax slabs:

• Income up to ₹12 lakh: No tax
• Income between ₹12 lakh and ₹18 lakh: 10% tax
• Income between ₹18 lakh and ₹25 lakh: 15% tax
• Income above ₹25 lakh: 20% tax

These changes aim to increase disposable income and stimulate consumer spending.

New Tax Slabs under the ‘New Income Tax Regime’ (India Budget)

New Tax Slab Rebate List (India Budget)

Capital Expenditure Boost

The government has allocated ₹10 lakh crore for capital expenditure, marking a 33% increase from the previous year. This investment focuses on infrastructure development, including:

• Expansion of national highways
• Modernization of railway networks
• Development of urban infrastructure

Such initiatives are expected to generate employment opportunities and enhance economic productivity.

Agriculture and Rural Development

To support the agricultural sector and rural communities, the budget includes:

• ₹2.5 lakh crore allocated for the agriculture sector
• Introduction of the ‘Agri-Tech Mission’ to promote technological advancements in farming
• Expansion of the ‘Pradhan Mantri Gram Sadak Yojana’ for better rural connectivity

These measures aim to increase farmers’ income and improve the quality of life in rural areas.

Healthcare Initiatives

The healthcare sector receives a significant boost with an allocation of ₹1.5 lakh crore. Key initiatives include:

• Establishment of new AIIMS institutions in various states
• Launch of the ‘National Telemedicine Program’ to enhance healthcare access in remote areas
• Increased funding for the ‘Ayushman Bharat’ scheme

These steps are designed to strengthen the healthcare infrastructure and provide quality medical services to all citizens.

Education and Skill Development

Recognizing the importance of education and skills, the budget proposes:

• ₹1 lakh crore allocated for the education sector
• Launch of the ‘Digital University’ to provide world-class education online
• Expansion of vocational training programs under the ‘Skill India’ initiative

These efforts aim to equip the youth with necessary skills and promote lifelong learning.

Support for Small and Medium Enterprises (SMEs)

To bolster SMEs, the government has announced:

• ₹50,000 crore allocated for the ‘Credit Guarantee Scheme’
• Reduction of compliance burdens and simplification of tax procedures
• Establishment of a dedicated portal for SME support and grievance redressal

These measures are expected to enhance the ease of doing business and promote entrepreneurship.

Green Energy and Sustainability

Emphasizing environmental sustainability, the budget includes:

• ₹1 lakh crore allocated for renewable energy projects
• Introduction of the ‘National Hydrogen Mission’ to promote green hydrogen production
• Incentives for electric vehicle adoption and manufacturing

These initiatives aim to reduce carbon emissions and promote sustainable development.

Overall, the Union Budget 2025 focuses on inclusive growth, economic stability, and sustainable development, addressing the needs of various sectors and promoting the welfare of all citizens.