Budget of India 2025: Key Highlights & Insights

The Union Budget 2025 was presented by Finance Minister Nirmala Sitharaman on February 1, 2025. This budget aims to boost economic growth, enhance infrastructure, and provide relief to taxpayers while maintaining fiscal discipline. 

Budget - 2025

Here’s a detailed breakdown of the major highlights.

Key Highlights of Budget 2025

1. Fiscal Overview

• Total Expenditure: ₹50.65 lakh crore
• Total Receipts (excluding borrowings): ₹34.96 lakh crore
• Fiscal Deficit Target: 4.4% of GDP (₹15.68 lakh crore)
• Capital Expenditure: ₹11.21 lakh crore
• Debt-to-GDP Target: Reduce from 57.1% to 50% by 2031

2. Taxation Reforms

Personal Income Tax

• New tax regime exemption limit raised to ₹12 lakh (previously ₹7 lakh)
• TDS (Tax Deduction at Source) on rent increased from ₹2.4 lakh to ₹6 lakh
• TDS for senior citizens’ interest doubled from ₹50,000 to ₹1 lakh

Corporate Tax

• No major changes; existing tax structure remains unchanged
• Incentives for startups and MSMEs extended

Detailed MSME's Schemes clickhere

3. Agriculture & Rural Development

Farmer Welfare Schemes

• PM Dhan-Dhaanya Krishi Yojana launched to benefit 1.7 crore farmers
• Kisan Credit Card (KCC) Loan limit increased to ₹5 lakh
• Pulses Production Mission to reduce import dependency on Tur, Urad, and Masoor
• Makhana Board in Bihar to promote cultivation and exports

4. Infrastructure & Industry

Boost to Manufacturing & Startups

• Incentives for electronics & EV production
• Tax exemptions for LED TV components, lithium-ion batteries
• 10-year tax exemption on shipbuilding & MRO sector

Transportation & Logistics

• ₹3 lakh crore allocated for railway modernization
• ₹2 lakh crore investment in national highways & expressways

5. Science, Technology & Innovation

• ₹20,000 crore for R&D and innovation in AI, semiconductors, and space tech
• 10,000 PM Research Fellowships in IITs & IISc
• Second Crop Gene Bank with 10 lakh germplasm lines for food security

6. Social Welfare & Employment

• Initiatives to formalize gig workers for better social security
• Subsidized farm loans & fertilizer subsidies for farmers
• ₹1.5 lakh crore for skill development programs to boost employment

7. Fiscal Discipline & Debt Management

• Gross Market Borrowing estimated at ₹11.53 lakh crore
• Continued focus on reducing debt-to-GDP ratio
• Measures to control inflation and stabilize the economy

Pro Tips for Common People

✅ Salary earners: Opt for the new tax regime if your annual income is below ₹12 lakh to enjoy tax benefits. 

✅ Farmers: Use the Kisan Credit Card scheme for easy loans at lower interest rates. 

✅ Investors: Keep an eye on startups & infrastructure stocks, as these sectors will see massive growth. 

✅ Business Owners: Take advantage of MSME incentives (Guide)and tax exemptions on specific industries.

Final Thoughts

The Budget 2025 focuses on growth, infrastructure, and innovation while ensuring financial stability. With major reforms in taxation, agriculture, and industry, this budget aims to empower common citizens, businesses, and startups for a prosperous future.

What are your thoughts on this budget? Let us know in the comments!