Features of Budget (2025-26)
Tax Reforms:
Income Tax Exemption: Individuals earning up to ₹12 lakh annually will
be exempt from income tax under the new regime. For salaried
taxpayers, this limit increases to ₹12.75 lakh due to a standard
deduction of ₹75,000. This change is expected to boost household
consumption, savings, and investment.
Tax Deduction at Source (TDS) and Tax Collection at Source (TCS)
Rationalization: The TDS limit on interest for senior citizens has been
doubled from ₹50,000 to ₹1 lakh. Additionally, the annual TDS limit on
rent has been increased from ₹2.40 lakh to ₹6 lakh.
Agriculture and Rural Development:
Prime Minister Dhan-Dhaanya Krishi Yojana: A new initiative to
enhance agricultural productivity and support farmers.
Enhanced Credit through Kisan Credit Card (KCC): Short-term loans for
7.7 crore farmers, fishermen, and dairy farmers will be increased to ₹5
lakh.
Self-Reliance in Pulses: A six-year mission focusing on increasing the
production of pulses like Tur, Urad, and Masoor.
Makhana Board in Bihar: Establishment of a dedicated board to
promote Makhana cultivation in Bihar.
Manufacturing and Exports:
Incentives for Electronics and Electric Vehicles (EVs): Exemptions will be
granted for open cells used in LED/LCD TVs, looms for textiles, and
capital goods for lithium-ion batteries used in mobile phones and EVs.
Promotion of Maintenance, Repair, and Overhaul (MRO): A 10-year
exemption on goods used for shipbuilding and ships meant for breaking.
The time limit for the export of railway goods imported for repairs will
also be extended.
Science and Innovation:
Research, Development & Innovation: An allocation of ₹20,000 crore
has been made to implement a private sector-driven research,
development, and innovation initiative.
PM Research Fellowship: Ten thousand fellowships will be provided for
technological research in IITs and IISc.
Gene Bank for Crops Germplasm: The second Gene Bank, housing 10
lakh germplasm lines, will be established to ensure future food and
nutritional security.
Fiscal Measures:
Fiscal Deficit Target: The fiscal deficit for 2025-26 is projected at 4.4% of
GDP.
Total Expenditure: The government plans to spend ₹50.65 lakh crore in
2025-26, a 7.4% increase over the previous year.
Certificate
Certificate of Authenticity
This is to certify that the project titled "Features of Current Budget
2025-2026" is the original work of Ansh Patel, a student of class 11,
in Economics, and has been submitted as part of the curriculum. The
work was completed under the guidance of Ms. Geetika Walia, PGT
Economics.
Signature of the Teacher: ______________________
Teacher's Name: Ms. Geetika Walia
Acknowledgement
I take my opportunity to express my profound gratitude and deep
regard to my guide and teacher, Ms. Geetika Walia, for her
exemplary guidance, monitoring and constant encouragement
throughout the course of this thesis. The blessing, help and guidance
given by her shall carry me a long way in the journey of life which i
am about to embark. I also take this opportunity to express a deep
sense of gratitude to my principal, Ms. Sarika Arora, for the cordial
support. Lastly, I thank almighty, my parents for their constant
blessings.
Index
1. Introduction
2. Highlights of Budget
3. Features of Budget
Tax Reforms
Agriculture and Rural Development
Manufacturing and Export
Science and Innovation
Fiscal Measures
4. Conclusion
5. Bibliography
Intoduction
The Union Budget 2025-2026 is one of the most important financial events in
India, as it outlines the government's revenue and expenditure plans for the
fiscal year, impacting every aspect of the economy and society. This budget is
presented by the Finance Minister of India in the Parliament, usually on the 1st
of February each year, and lays down the economic roadmap for the coming
year.
The Union Budget is a statement of the government's fiscal policies, setting out
how the country will allocate resources across different sectors to achieve
overall economic objectives such as growth, stability, employment generation,
and social welfare. For the 2025-2026 fiscal year, the budget is expected to
focus on key areas such as boosting the country's economic recovery post-
pandemic, creating job opportunities, infrastructure development, supporting
digital transformation, and ensuring social justice.
The government’s vision for the 2025-2026 budget will likely emphasize
sectors like healthcare, education, agriculture, infrastructure, and defense,
alongside green energy and climate change mitigation. In line with the
Atmanirbhar Bharat (Self-Reliant India) initiative, the budget may also focus
on indigenous manufacturing, promoting exports, and enhancing the digital
economy.
This year's budget is particularly crucial, given the global economic challenges,
inflationary pressures, and the need for India to strengthen its financial
resilience. The budget is not just a tool for managing the country's finances but
also a statement of the government's priorities, aimed at balancing fiscal
responsibility with socio-economic development.
Key measures such as tax reforms, public investment in infrastructure,
financial support for key industries, and schemes for social welfare will form
an important part of the budget's proposals. It is anticipated that the budget will
also focus on ensuring fiscal consolidation while promoting inclusive growth
and addressing issues like job creation and poverty reduction.
Overall, the Union Budget 2025-2026 will set the tone for India's economic
direction in the coming year, influencing investment decisions, economic
growth, and the well-being of citizens across the country.
Highlights of Budget
1. Tax Reforms
2. Agriculture and Rural Development
3. Manufacturing and Exports
4. Science and Innovation
5. Fiscal Measures
Conclusion
The Union Budget 2025-2026 serves as a pivotal document that
outlines the government's financial vision and its plans to drive India's
economic growth, development, and social welfare. With a focus on
achieving sustainable growth, addressing key challenges, and
enhancing economic resilience, the budget is expected to play a
crucial role in shaping India's future.
Key highlights of the budget, such as targeted investments in
infrastructure, education, healthcare, and green energy, reflect the
government’s commitment to long-term economic stability and
inclusive development. The proposed reforms in taxation, along with
policies aimed at boosting the digital economy, manufacturing, and
exports, are likely to enhance India's position as a global economic
player.
The budget is also poised to focus on fiscal consolidation, balancing
the need for investment in essential sectors while ensuring
manageable debt levels. Additionally, the emphasis on social welfare
programs and job creation underscores the government's efforts to
bridge the gap between economic growth and equitable distribution of
resources.
In conclusion, the Union Budget 2025-2026 is a comprehensive
roadmap that seeks to address both immediate economic challenges
and long-term developmental goals. By focusing on infrastructure,
sustainability, and social welfare, it has the potential to stimulate
growth, foster innovation, and improve the quality of life for the
citizens of India. The successful implementation of the budgetary
proposals will be key to realizing India's economic aspirations and
achieving a more inclusive and prosperous future.
Bibliography
Government of India, Ministry of Finance
Union Budget 2025-2026: Budget Documents
Government of India, Ministry of Finance,
https://www.finmin.nic.in/
(Accessed on: February 11, 2025)
Press Information Bureau, Government of India
Union Budget 2025-2026 Key Highlights
Press Information Bureau, https://pib.gov.in/
(Accessed on: February 11, 2025)
National Portal of India
Union Budget Overview and Reports
National Portal of India, https://www.india.gov.in/
(Accessed on: February 11, 2025)
Reserve Bank of India
Monetary Policy and Economic Outlook in Context of Budget
2025-2026
Reserve Bank of India, https://www.rbi.org.in/
(Accessed on: February 11, 2025)
Ministry of Statistics and Programme Implementation
Economic Survey 2025-2026
Ministry of Statistics and Programme Implementation,
http://mospi.nic.in/
(Accessed on: February 11, 2025)
