UNION BUDGET 2025-26 THE ROAD MAP OF INDIAN ECONOMY

Running any country depends entirely on its economy. And budget is the important part of that economy, budget means allocation of resources by central government, planning to spend money in education, healthcare, infrastructure, investment sector, manufacturing etc. And the purpose of the budget is to make our country grateful and the economy run smoothly.

The Union Government and Finance Minister Smt. Nirmala Sitharaman have presented the Union Budget 2025-26 on 1 February 2025. Our Finance Minister in Parliament has delivered his speech on Budget 2025-26 and it includes all the essential parts that are important for the economy and important for the people of the country, the education system, microculture and enterprise, small business and enterprise sockets. And they have firmly marked out the country’s middle class and salaried people and created new tax slabs specifically for them.

JOURNEY OF THE DEVELOPMENT UNION BUDGET 2025-26

The government has clearly mentioned in the union budget 2025-26 that the final destination will be development of the country by 2047 (government has taken the target that they will develop the country by 2047) and the thing what motivates the government is inclusiveness (means all members have to work together) and for reaching the target governments have to do reforms and for reforms government has decided 4 pillars where reforms are needed and the 4 pillars are agriculture sector, MSME sector, investment sector, and export sector.

ASPIRATION OF DEVELOPED INDIA

The aspiration of the government is to increase growth, increase inclusive growth, take care of the purchasing power of the middle class, increase the purchasing power of the middle class, bring prosperity to the family, increase domestic investment.

THEME OF UNION BUDGET 2025-26

Development for all

And some of the other principals –

• Growth for all
• And some other principles
• Poverty elimination
• 100% increase in education system
• Better health care system
• Employment
• Participation of women in economic activities
• And making India the food basket of the world

AGRICULTURE SECTOR

In the Union Budget 2025-26 the government will introduce the high yielding seeds mission which will be comparatively more productive and also more tolerant in climate change and they have also said in the budget that they will increase the amount of Kisan Credit Card from 3 lakh to 5 lakh (according to government data 7.75 crore Kisan Credit Cards have been distributed till now) and also the government is planning to introduce the new scheme Pradhan Mantri Kisan Dhan Dhan Yojana where the central government and state government together will select 100 districts where there is a lack of agricultural productivity and the government will try to improve agricultural productivity and also improve crop diversification and agricultural resilience and in this area the government is going to introduce the Cotton Production Scheme where the government will try to improve cotton production and help the income of cotton growers and they have also made a plan for Bihar where they will create new Makhana Board in which the government will try to improve the production of Makhana also government wants to achieve independency on pulses that is why government introduce pulses independency mission .

MSME SECTOR

In the Union Budget 2025-26 the government has launched the loan assistance scheme where the government will launch the Udyam portal in which the entrepreneurs have to register on this portal and then the government will help the MSME entrepreneurs financially on this credit card the government will provide the loan amount of Rs 5 lakh and in the first year the government will issue 10 lakh credit cards and also there is a plan to launch a scheme in which those entrepreneurs who are doing business for the first time will get help by the government in this scheme the government will provide the amount up to 5 lakh to cover women and vulnerable group and the government has set the target that they will distribute the amount up to 2 crore in the next five years and also the government will introduce the manufacturing mission in which the government will provide the low cost of business and improve the availability of business and also they will increase the workforce, the scheme in the labour intensive sector is the focused product scheme where the government expects that 22 lakh people will get employment and turnover of 4 lakh crore and export of about 1.1 lakh crore will be done only from this scheme and apart from this there is also a scheme in the toy manufacturing sector and food processing sector.

INVESTMENT SECTOR

In the Union Budget 2025-26 the government has fixed some categories to invest in and these categories are People, Economy, and Innovation the government says that they will invest in the people of the country, economy of the country, and innovation which will help to generate new sources of income for the Indian economy. For this the government will introduce Saksham Anganwadi Yojana 2.0 which will help in providing nutritional full food to the children and the next thing is that the government will increase the capacity of IIT (according to the budget the government will increase 6500 seats in IIT) and the next part is that the government will establish day care cancer centres in each district of the country and also there is a plan of Bhartiya Bhasha Pushtak Yojana in which all those school and higher education books will be translated into Indian languages ​​and they will be made digital and also the government is talking about establishing 5 National Centres of Excellence which will improve research and innovation and also they are talking about establishing Atal Tinkering Laboratories and also the government has taken a target of establishing Atal Tinkering Laboratories in 50000 schools of the country and also will establish Centres of Excellence and Artificial Intelligence in this scheme 500 crores will be invested and broadband and internet connectivity will be provided in all the government schools and hospitals of the country and the government has decided to increase 10000 seats in medical colleges and in the next 5 years they will increase 75000 seats in medical colleges will increase and he has also discussed about Pradhan Mantri Swanidhi Yojana in which they will improve the services and facilities of this scheme and the government has also talked about that they will introduce welfare scheme for online workers (GIG Workers) and also the government has decided to give loan to the states for the development of infrastructure and this amount will be 1.5 lakh crore for 50 years and the best thing is that the loan will be interest free and will also develop Jal Jeevan Mission all over the country and the next government will encourage the states to reform and will improve the power sector and if the states implement these reforms then the central government will give another loan of 0.5% of its GDP to overcome the challenges faced in urban areas and the amount will be 1 lakh crore and the next government will start the Maritime Development Fund and the amount will be 25000 crore and also the government will start nuclear energy and Udaan scheme for developed India and the target is to set up 120 destinations for Udaan and carry 4 crore passengers to the destination and next to the Western Koshi river New airport in Bihar will be set up green field airport and next government will start swamy nidhi scheme and in this government will invest 15000 crores so that people who are not able to complete their under construction houses will be helped and employment will be started in tourism sector according to this government will find 50 tourist places with the help of states and will start e visa services and some next things are PM research fellowship.

EXPORT PROMOTION SECTOR

In the Union Budget 2025-25 the government is going to launch the export promotion mission and according to this mission sector and ministry specific targets will be set by the government and will also help the export sector in easy access to credit and will also help in cross border factoring and will try to eliminate non tariff barriers and the government will launch Indian Trade Net Platform it will be digital public infrastructure which will help in uploading the documents required for export trade online and it will help financially and it aims to connect Indian economy with the international supply chain and apart from this the government will set up global capability centres in tier 2 cities of India and will also provide air cargo storage services and to help in rural development and reforms the government will launch the Gramin Credit Score Framework Scheme which will provide loans to self help groups and the government will provide loans with the help of NABFID (National Bank for Financial Infrastructure and Development) FDI is allowed 100% but the condition is that the entire premium amount will be invested in the Indian market and the government says that they will do tax reforms and will introduce new income tax bill And will also do easy regulatory reforms. Also government will make high level committee which will take care of non financial sector and government will start investment friendly index for states. With the help of this government will know which states are very attractive in terms of investment. Also trying to introduce Public Trust Bill 2.O under which government will remove 100 provisions and reduce crime and there are some medicines which will be custom free (36 life saving cancer medicines will be tax free and 6 medicines will get 5% deduction on tax) and most important thing for middle class they don’t need to pay tax on annual income of 12 lakhs and salaried people will get additional deduction on 75000 as per exemption provision Income Tax Act 1961 exemption provision (section 87A).

NEW TAX REGIME

NOTE– This new tax slabs and rule will be applicable after closing this financial year.

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