India Budget 2025: Tax relief for middle class, interest-free loans to states

Highlights of the Union Budget 2025-26 presented by India's federal Finance Minister Nirmala Sitharaman in Parliament on Saturday:

DIRECT TAX

No personal income tax for income up to Rs 12 lakh under the new regime 

Limit will be Rs 12.75 lakh for salaried taxpayers due to a standard deduction of Rs 75,000

Revenue of about Rs 1 lakh crore in direct taxes will be forgone

New Income-Tax Bill to be clear and simple

INDIRECT TAX

Removes seven tariff rates

Social Welfare Surcharge on 82 tariff lines that are subject to a cess exempted

INSURANCE SECTOR

Foreign Direct Investment (FDI) in the insurance sector to be hiked to 100 per cent from 74 per cent

GOVT RECEIPTS

Total receipts other than borrowings at Rs 34.96 lakh crore; total expenditure at Rs 50.65 lakh crore Net tax receipts at Rs 28.37 lakh crore

Fiscal deficit at 4.4 per cent of GDP

Gross market borrowings at Rs 14.82 lakh crore

Capex expenditure at Rs 11.21 lakh crore or (3.1 pc of GDP)

AGRICULTURE SECTOR

Prime Minister Dhan Dhanya Krishi Yojana - The programme to be launched in partnership with states, covering 100 districts, to benefit 1.7 crore farmers

Government to launch 6-year 'Mission for Aatmanirbharta in Pulses' with focus on Tur, Urad and Masoor  NAFED and NCCF to procure these pulses from farmers in next 4 years

Comprehensive programme for vegetables and fruits

Makhana Board to be established in Bihar to improve production, processing, value addition, and marketing of fox nuts

Urea Plant with an annual capacity of 12.7 lakh metric tonnes to be set up at Namrup, Assam

MSME SECTOR

Investment and turnover limits for classification of all MSMEs to be enhanced to 2.5 and 2 times, respectively

Customised credit cards with Rs 5 lakh limit for micro-enterprises registered on Udyam portal, 10 lakh cards to be issued in 1st year

New Fund of Funds, with expanded scope and a fresh contribution of Rs 10,000 crore to be set up

New scheme for 5 lakh women, SC and ST first-time entrepreneurs to provide term-loans up to Rs 2 cr in the next 5 years announced

Focus product scheme announced to facilitate employment for 22 lakh persons, generate a turnover of Rs 4 lakh cr and exports of over Rs 1.1 lakh crore

Scheme to create high-quality, unique, innovative, and sustainable toys, making India a global hub for toys announced

National Institute of Food Technology, Entrepreneurship and Management to be set up in Bihar

National Manufacturing Mission covering small, medium and large industries for furthering "Make in India" announced

INVESTMENT AS ENGINE OF DEVELOPMENT

50,000 Atal Tinkering Labs to be set up in Government schools in next 5 years

Broadband connectivity to be provided to all government secondary schools and primary health centres in rural areas under Bharatnet project

Additional infrastructure to be created in the 5 IITs started after 2014 to facilitate education for 6,500 more stud

Centre of Excellence in Artificial Intelligence for education to be set up with a total outlay of Rs 500 crore 10,000 additional seats to be added in medical colleges and hospitals next year, adding to 75,000 seats in next 5 years

PM SVANidhi scheme to be revamped with enhanced loans from banks, UPI-linked credit cards with a Rs 30,000 limit, and capacity-building support

Government to arrange for identity cards, registration on e-Shram portal and healthcare under PM Jan Arogya Yojana for gig workers

Infrastructure-related ministries to come up with a 3-year pipeline of projects in PPP mode; states also encouraged

Support to states for infrastructure - Outlay of Rs 1.5 lakh crore proposed for the 50-year interest-free loans to states for capital expenditure and incentives for reforms

Asset Monetisation Plan - Second Plan for 2025-30 to plough back capital of Rs 10 lakh crore in new projects announced

Nuclear Energy Mission for research and development of Small Modular Reactors (SMR) with an outlay of Rs 20,000 crore to be set up, 5 indigenously developed SMRs to be operational by 2033

Modified UDAN scheme announced to enhance regional connectivity to 120 new destinations and carry 4 crore passengers in next 10 years

SWAMIH

Fund 2 - A fund of Rs 15,000 cr aimed at expeditious completion of another 1 lakh dwelling units, with contributions from the government, banks and private investors announced

'BharatTradeNet' (BTN) for international trade to be set up as a unified platform for trade documentation and financing solutions.