{"id":159180,"date":"2025-02-01T14:41:06","date_gmt":"2025-02-01T09:11:06","guid":{"rendered":"https:\/\/www.mapsofindia.com\/my-india\/?p=159180"},"modified":"2025-02-01T14:41:06","modified_gmt":"2025-02-01T09:11:06","slug":"union-budget-2025-finance-minister-nirmala-sitharamans-key-announcements","status":"publish","type":"post","link":"https:\/\/www.mapsofindia.com\/my-india\/india\/union-budget-2025-finance-minister-nirmala-sitharamans-key-announcements","title":{"rendered":"Union Budget 2025: Finance Minister Nirmala Sitharaman\u2019s Key Announcements"},"content":{"rendered":"<p><span id=\"input-sentence~0\">On February 1, 2025, Finance Minister Nirmala Sitharaman presented the much-anticipated Union Budget for the fiscal year 2025-26. With a vision of transforming India into a &#8216;Viksit Bharat&#8217; (Developed India), the budget focused on inclusive development, economic growth, and structural reforms.<\/span><span id=\"input-sentence~1\"> \u201cOur economy is the fastest-growing among all top economies of the world,\u201d Sitharaman said. Over the past decade, our development achievements and structural reforms have\u2002received global attention and recognition.&#8221;<\/span><\/p>\n<h2><strong>Budget Theme and Vision<\/strong><\/h2>\n<p>Framed within a broader\u2002vision of national progress, which the budget aims to pursue in line with the government\u2019s longer-term developmental goals, Sitharaman went on to identify eight aspects of the budget that would contribute towards this vision of a better future.<span id=\"input-sentence~2\"> She outlined key aspirations for &#8216;Viksit Bharat,&#8217; including:<\/span><\/p>\n<ul>\n<li>Zero poverty<\/li>\n<li>Universal quality education<\/li>\n<li>High-quality, affordable healthcare<\/li>\n<li>100% skilled labour with meaningful employment<\/li>\n<li>70% participation of women in economic activities<\/li>\n<li>A globally competitive agricultural sector<\/li>\n<\/ul>\n<p>FM stated, \u201cThis period\u2002has seen faith in India\u2019s power and potential getting only stronger, she said.<span id=\"input-sentence~3\"> Accordingly, we perceive the upcoming five years as a distinctive chance to materialize \u2018Sabka Vikas\u2019\u2002and give an impetus to equitable development among all the regions.\u201d<\/span><\/p>\n<h2><strong>Key Focus Areas<\/strong><\/h2>\n<p>The budget covers ten broad sectors, including agriculture,\u2002rural development, MSMEs, employment, energy security, exports and innovation.<span id=\"input-sentence~4\"> The government\u2019s four \u2018powerful engines\u2019 of growth were identified as:<\/span><\/p>\n<ul>\n<li><strong>Agriculture:<\/strong> Strengthening farmer welfare and productivity<\/li>\n<li><strong>MSMEs:<\/strong> Empowering small businesses with credit and infrastructure<\/li>\n<li><strong>Investment:<\/strong> Enhancing public and private sector capital expenditure<\/li>\n<li><strong>Exports:<\/strong> Improving trade policies and global competitiveness<\/li>\n<\/ul>\n<p>With reforms as fuel and inclusivity as the guiding spirit, Sitharaman declared, &#8220;Our economy&#8217;s four engines will propel us toward our destination of a developed India.&#8221;<span id=\"input-sentence~5\"><\/span><\/p>\n<h2><strong>Major Announcements<\/strong><\/h2>\n<h2><strong>1. Agriculture and Rural Development<\/strong><\/h2>\n<p>\u2018Prime Minister Dhan-Dhaanya Krishi\u2002Yojana\u2019, announced by Sitharaman aims to increase agricultural productivity and improve the availability of credit. The program\u2002focuses on 100 low-productivity districts with measures like:<\/p>\n<ul>\n<li>Crop\u2002diversity and sustainable agriculture.<\/li>\n<li>Access to long-term credit for farmers.<\/li>\n<li><strong>Warehousing expansion:<\/strong>\u2002More controlled rooms for perishables.<\/li>\n<li><strong>Enhanced irrigation facilities:<\/strong> Greater investment in water resources for agriculture.<\/li>\n<\/ul>\n<p>She highlighted, &#8220;This program will benefit 1.7 crore farmers and significantly uplift rural prosperity.&#8221;<\/p>\n<p>Additionally, the government launched the \u2018Mission for Aatmanirbharta in Pulses\u2019, focusing on self-sufficiency in key pulses such as Tur, Urad, and Masoor.<span id=\"input-sentence~7\"><\/span><\/p>\n<h2><strong>2. MSMEs and Manufacturing<\/strong><\/h2>\n<p>Recognising MSMEs as the backbone of the economy, the Finance Minister announced enhancements in credit availability:<\/p>\n<ul>\n<li>Credit guarantee cover for Micro and Small Enterprises increased from \u20b95 crore to \u20b910 crore.<\/li>\n<li>Loan limits under the Modified Interest Subvention Scheme raised from \u20b93 lack to \u20b95 lacks for farmers<\/li>\n<li>Customized credit cards with a \u20b95 lakh limit for micro-enterprises<\/li>\n<\/ul>\n<p>For manufacturing, she introduced the \u2018National Manufacturing Mission\u2019 to strengthen the Make in India initiative, covering small, medium, and large industries.<span id=\"input-sentence~8\"><\/span><\/p>\n<p>&#8220;We will provide policy support and execution roadmaps to ensure Indian manufacturers compete at a global level,&#8221; she assured.<\/p>\n<h2><strong>3. Investment and Infrastructure<\/strong><\/h2>\n<p>Public and private investment was a major highlight, with a \u20b91.5 lakh crore outlay for state infrastructure and reforms.<span id=\"input-sentence~9\"> Also, a \u20b910 lakh crore Asset Monetisation Plan was announced to\u2002re-deploy capital into new projects.<\/span><\/p>\n<p><strong>Sitharaman announced:<\/strong><\/p>\n<ul>\n<li>Extension of Jal Jeevan Mission till 2028 to\u2002provide every household with clean drinking water.<\/li>\n<li>Urban Challenge Fund of \u20b91\u2002lakh crore to redevelop the cities.<\/li>\n<li>Mission 100GW\u2002of Nuclear Power by 2047.<\/li>\n<\/ul>\n<h2><strong>4.<span id=\"input-sentence~10\"> Education and Skill Development<\/span><\/strong><\/h2>\n<p>The budget laid special emphasis on upskilling India\u2019s youth:<\/p>\n<ul>\n<li>50,000 Atal Tinkering Labs in government schools.<\/li>\n<li>Broadband connectivity to all rural secondary schools and primary health centres.<\/li>\n<li>10,000 additional medical education seats in the next fiscal year.<\/li>\n<li><strong>PM Research Fellowship:<\/strong> 10,000 fellowships for research in IITs and IISc.<\/li>\n<li><strong>Deep Tech Fund of Funds:<\/strong> Support for next-gen startups.<\/li>\n<li><strong>PM SVANidhi Scheme:<\/strong> Expansion to provide credit cards linked to UPI for street vendors.<\/li>\n<li><strong>Urban livelihoods program:<\/strong> Focused on skill development for urban workers.<\/li>\n<li><strong>Expansion of medical education:<\/strong> 10,000 additional medical seats to be added in 2025-26.<\/li>\n<li><strong>National Centres of Excellence for Skilling:<\/strong> Focused on equipping youth with future-ready skills.<\/li>\n<li><strong>Day Care Cancer Centres:<\/strong> 200 centres are to be established in district hospitals.<\/li>\n<\/ul>\n<p>&#8220;By expanding medical education and digital literacy, we are investing in the future of our youth,&#8221; she remarked.<span id=\"input-sentence~13\"><\/span><\/p>\n<h2><strong>5. Financial Sector and Taxation Reforms<\/strong><\/h2>\n<p>The Finance Minister introduced a series of structural reforms in\u2002the financial sector:<\/p>\n<ul>\n<li>The Foreign Direct Investment\u2002(FDI) limit in the insurance sector increased from 74% to 100%<\/li>\n<li>On September 27, 2021, RBI announced a special liquidity\u2002facility for the healthcare sector.<\/li>\n<li>Liberalizing KYC rules to widen access\u2002to banking.<\/li>\n<\/ul>\n<p>On\u2002taxation, she said: \u201cOur reforms will make tax compliance more straightforward and more equitable. We reaffirm our pledge of \u2018trust\u2002first, scrutinize later.\u2019\u201d<\/p>\n<p>The tax proposals included:<\/p>\n<ul>\n<li>New tax slabs were introduced, reducing the burden on middle-class taxpayers.<\/li>\n<li>A major highlight was the revision of personal income tax slabs:<\/li>\n<\/ul>\n<table>\n<tbody>\n<tr>\n<td width=\"279\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Total Income<\/td>\n<td width=\"133\">Rate of Tax<\/td>\n<\/tr>\n<tr>\n<td width=\"279\">Upto ` 4,00,000<\/td>\n<td width=\"133\">Nil<\/td>\n<\/tr>\n<tr>\n<td width=\"279\">From ` 4,00,001 to ` 8,00,000<\/td>\n<td width=\"133\">5 per cent<\/td>\n<\/tr>\n<tr>\n<td width=\"279\">From ` 8,00,001 to ` 12,00,000<\/td>\n<td width=\"133\">10 per cent<\/td>\n<\/tr>\n<tr>\n<td width=\"279\">From ` 12,00,001 to ` 16,00,000<\/td>\n<td width=\"133\">15 per cent<\/td>\n<\/tr>\n<tr>\n<td width=\"279\">From ` 16,00,001 to ` 20,00,000<\/td>\n<td width=\"133\">20 per cent<\/td>\n<\/tr>\n<tr>\n<td width=\"279\">From ` 20,00,001 to ` 24,00,000<\/td>\n<td width=\"133\">25 per cent<\/td>\n<\/tr>\n<tr>\n<td width=\"279\">Above ` 24,00,000<\/td>\n<td width=\"133\">30 per cent<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<ul>\n<li>Additionally, taxpayers earning up to \u20b912 lakh will now pay zero income tax due to enhanced rebates.<span id=\"input-sentence~15\"> \u201cThis structure will substantially reduce the tax burden on the middle class, boosting household consumption, savings, and investment,\u201d Sitharaman explained.<\/span><\/li>\n<li>TDS and TCS thresholds increased for improved ease of business<\/li>\n<\/ul>\n<p>Also, FM Nirmala Sitharaman stated that the new Income Tax Bill will be introduced in the upcoming week.<span id=\"input-sentence~16\"><\/span><\/p>\n<h2><strong>6. Export and Trade Policies<\/strong><\/h2>\n<p>The announcement of the Export Promotion Mission to help\u2002India increase its share in global trade. &#8220;We will help integrate global\u2002supply chains and support our manufacturing capacities,&#8221; said Sitharaman.<\/p>\n<p><strong>Key measures included:<\/strong><\/p>\n<ul>\n<li><strong>BharatTradeNet:<\/strong> Digital documentation platform for\u2002trade.<\/li>\n<li>Air cargo warehousing,\u2002especially for perishable exports<\/li>\n<li>Encouragement for toys, footwear\u2002and leather industry goods to raise exports<\/li>\n<\/ul>\n<h2><strong>Fiscal Consolidation\u2002and Outlook<\/strong><\/h2>\n<p>The finance minister reiterated the government\u2019s commitment to fiscal discipline, projecting the\u2002fiscal deficit target at 4.4% of GDP in 2025-26.<span id=\"input-sentence~18\"> She concluded her speech by invoking Thirukkural:<\/span><\/p>\n<p>&#8220;Just as living beings expect rains, citizens expect good governance.&#8221;<\/p>\n<h3><strong>Fiscal Policy and Deficit Management<\/strong><\/h3>\n<ul>\n<li><strong>Fiscal Deficit Target:<\/strong> 4.4% of GDP for FY 2025-26.<\/li>\n<li><strong>Net tax receipts:<\/strong> Estimated at \u20b928.37 lakh crore.<\/li>\n<li><strong>Total expenditure:<\/strong> \u20b950.65 lakh crore.<\/li>\n<\/ul>\n<h3><strong>Market Borrowings:<\/strong><\/h3>\n<ul>\n<li><strong>Net:<\/strong> \u20b911.54 lakh crore<\/li>\n<li><strong>Gross:<\/strong> \u20b914.82 lakh crore<\/li>\n<li><strong>Asset Monetisation Plan 2025-30:<\/strong> Seeking\u2002\u20b910 lakh crore investment.<\/li>\n<\/ul>\n<h2><strong>Conclusion<\/strong><\/h2>\n<p>The 2025-26 budget reaffirms India\u2019s\u2002pledge for inclusive growth, economic resilience and global competitiveness. The government is looking to build a sustainable and equitable economy through solid\u2002investments in agriculture, MSMEs, infrastructure, clean energy, and financial inclusion.<span id=\"input-sentence~20\"><\/span><\/p>\n<p>\u201cReforms, however, are not a destination. They are a means to achieve good governance for our people and economy,\u201d Sitharaman concluded.<\/p>\n<p>This budget lays a solid foundation for a \u2018Viksit Bharat\u2019, addressing the needs of all sections of society while maintaining fiscal prudence and long-term development goals.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On February 1, 2025, Finance Minister Nirmala Sitharaman presented the much-anticipated Union Budget for the fiscal year 2025-26. With a vision of transforming India into a &#8216;Viksit Bharat&#8217; (Developed India), the budget focused on inclusive development, economic growth, and structural reforms. \u201cOur economy is the fastest-growing among all top economies of the world,\u201d Sitharaman said. [&hellip;]<\/p>\n","protected":false},"author":21868,"featured_media":159186,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12287,12384,12268,12591,12420,12266,12374,11315,12308,12375,12259],"tags":[],"class_list":{"0":"post-159180","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-agriculture","8":"category-banking","9":"category-benefits","10":"category-bihar","11":"category-economy","12":"category-facts","13":"category-finance-2","14":"category-india","15":"category-modi","16":"category-money","17":"category-news"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/posts\/159180","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/users\/21868"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/comments?post=159180"}],"version-history":[{"count":3,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/posts\/159180\/revisions"}],"predecessor-version":[{"id":159187,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/posts\/159180\/revisions\/159187"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/media\/159186"}],"wp:attachment":[{"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/media?parent=159180"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/categories?post=159180"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/tags?post=159180"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}