North News
New Delhi, February 1
The Union Budget presented by Finance Minister Nirmala Sitharaman on Saturday introduces several measures aimed at driving economic growth and supporting various sectors. For the middle class, the government has exempted income tax on average monthly earnings up to ₹1 lakh and raised the tax-free income limit for salaried individuals in the new tax regime to ₹12.75 lakh per year. Agriculture receives a boost through the “Prime Minister Dhan-Dhaanya Krishi Yojana,” which will benefit 1.7 crore farmers in low-productivity districts. The budget also prioritizes MSMEs, with credit guarantees increased from ₹5 crore to ₹10 crore.
To promote innovation, ₹500 crore is allocated for a Centre of Excellence in Artificial Intelligence for education. Gig workers will receive identity cards and healthcare benefits, while ₹1 lakh crore is earmarked for urban development. The fiscal deficit is projected to decrease from 4.8% in FY-25 to 4.4% in FY-26, reflecting the government’s commitment to fiscal consolidation.
Summary of Union Budget 2025-26 Highlights:
- Income Tax Relief:
- No income tax for average monthly income up to ₹1 lakh.
- Salaried individuals in the new tax regime will pay no tax on income up to ₹12.75 lakh annually.
- Development Focus:
- Union Budget recognizes four key development engines: Agriculture, MSMEs, Investment, and Exports.
- Agriculture Initiatives:
- PM Dhan-Dhaanya Krishi Yojana benefits 1.7 crore farmers in 100 low-productivity agricultural districts.
- Aatmanirbharta in Pulses Mission for tur, urad, and masoor.
- Loans up to ₹5 lakh through KCC under the modified interest subvention scheme.
- Fiscal Deficit Target:
- FY-25 estimated fiscal deficit of 4.8%, aiming to reduce to 4.4% in FY-26.
- MSMEs & Manufacturing:
- Credit guarantees to MSMEs increased from ₹5 crore to ₹10 crore.
- National Manufacturing Mission to promote “Make in India.”
- Enhanced funding for research and innovation with ₹20,000 crore allocated for private sector-driven R&D.
- Education and Innovation:
- 50,000 Atal Tinkering Labs to be set up in government schools over the next 5 years.
- Centre of Excellence in AI for education with ₹500 crore allocation.
- Support for Gig Workers:
- Gig workers to receive identity cards, registration on the e-Shram portal, and healthcare under PM Jan Arogya Yojana.
- Urban Development:
- ₹1 lakh crore Urban Challenge Fund for cities as growth hubs.
- Modified UDAN scheme to enhance regional connectivity with 120 new destinations.
- Housing and Infrastructure:
- ₹15,000 crore SWAMIH Fund for expediting the completion of 1 lakh stressed housing units.
- Energy & Environment:
- Nuclear Energy Mission to fund R&D of Small Modular Reactors with ₹20,000 crore.
- BCD exemptions to boost battery and shipbuilding industries.
- Tax and Law Reforms:
- Income tax returns time limit increased from 2 to 4 years.
- TCS payment delay decriminalized, and TDS on rent raised from ₹2.4 lakh to ₹6 lakh.
- Jan Vishwas Bill 2.0 to decriminalize 100+ provisions in various laws.
- Customs Duties:
- BCD exemptions on lifesaving drugs, and raw materials for shipbuilding.
- Reduced BCD on frozen fish paste and fish hydrolysate.
