Union Budget 2025–26 – Key Highlights for UPSC
Budget & Fiscal Targets
- Receipts (excl. borrowings): ₹34.96 lakh crore
- Expenditure: ₹50.65 lakh crore
- Net tax receipts: ₹28.37 lakh crore
- Fiscal deficit: 4.4% of GDP
- Gross market borrowings: ₹14.82 lakh crore
- Capital expenditure (Capex): ₹11.21 lakh crore (3.1% of GDP)
Four Engines of Development
1. Agriculture
- PM Dhan-Dhaanya Krishi Yojana: 100 low-productivity districts; benefit 1.7 crore farmers.
- Mission for Aatmanirbharta in Pulses: Focus on Tur, Urad, Masoor; NAFED/NCCF procurement for 4 yrs.
- Comprehensive Fruits & Vegetables Programme.
- Makhana Board in Bihar.
- National Mission on High Yielding Seeds (100+ new varieties).
- Fisheries Framework for EEZ & High Seas; focus on A&N, Lakshadweep.
- 5-year Cotton Mission for extra-long staple varieties.
- KCC Loan Limit raised from ₹3 lakh → ₹5 lakh.
- Urea Plant in Namrup, Assam (12.7 lakh MT/year).
2. MSMEs
- MSME classification limits ↑ (investment ×2.5, turnover ×2).
- Credit Cards for Micro Enterprises: ₹5 lakh limit (10 lakh cards in Yr-1).
- Fund of Funds for startups: ₹10,000 crore.
- Term-loans upto ₹2 crore for 5 lakh women/SC/ST entrepreneurs (5 years).
- Focus Product Scheme for Footwear & Leather (22 lakh jobs).
- Toy sector scheme; National Institute of Food Technology in Bihar.
- National Manufacturing Mission for “Make in India”.
3. Investment
- Saksham Anganwadi & Poshan 2.0 – cost norms ↑.
- 50,000 Atal Tinkering Labs in 5 yrs.
- Broadband to Govt secondary schools & PHCs (Bharatnet).
- Bharatiya Bhasha Pustak Scheme – digital books in Indian languages.
- 5 Skilling CoEs, IIT infra expansion (+6,500 seats).
- AI CoE for Education – ₹500 crore.
- Medical seats: +10,000 in 2025–26; +75,000 in 5 yrs.
- Day Care Cancer Centres in all districts (200 in 2025–26).
- Urban livelihoods scheme; revamped PM SVANidhi (₹30k UPI-linked credit card).
- Social security for gig workers (ID, e-Shram, PMJAY).
- PPP Infra Pipeline (3 yrs), ₹1.5 lakh crore 50-yr interest-free loans to states.
- Asset Monetization Plan 2025–30: ₹10 lakh crore.
- Urban Challenge Fund: ₹1 lakh crore.
- Nuclear Energy Mission – 5 SMRs by 2033 (₹20,000 crore).
- Maritime Development Fund: ₹25,000 crore (49% Govt share).
- UDAN Revamp: 120 new destinations; 4 crore passengers/10 yrs.
- Greenfield airport in Bihar; Western Koshi Canal Project.
- SWAMIH Fund 2: ₹15,000 crore (1 lakh houses).
- Top 50 tourist destinations via challenge mode.
4. Exports
- Export Promotion Mission (sectoral & ministerial targets).
- BharatTradeNet unified trade platform.
- National Framework for GCCs in Tier-2 cities.
Financial Sector & Reforms
- FDI in Insurance: 74% → 100% (if full premium invested in India).
- NaBFID Credit Enhancement Facility for infra bonds.
- Grameen Credit Score by PSBs.
- Jan Vishwas Bill 2.0 – decriminalizes 100+ provisions.
- Investment Friendliness Index of States in 2025.
Direct Taxes
- No tax up to ₹12 lakh (₹12.75 lakh for salaried, new regime).
- Revised slabs (new regime):
- ₹0–4 lakh → Nil
- ₹4–8 lakh → 5%
- ₹8–12 lakh → 10%
- ₹12–16 lakh → 15%
- ₹16–20 lakh → 20%
- ₹20–24 lakh → 25%
- Above ₹24 lakh → 30%
- Senior citizen interest exemption limit ↑ to ₹1 lakh.
- TDS rent limit ↑ to ₹6 lakh/year.
- TCS on LRS remittance threshold ↑ to ₹10 lakh.
- Two self-occupied houses – annual value NIL allowed.
- Start-up incorporation benefit extended to 1 April 2030.
- Tonnage tax benefits extended to inland vessels.
Indirect Taxes
- Customs tariff rates simplified (7 more removed; only 8 remain incl. zero).
- 36 lifesaving drugs exempt from BCD; 6 drugs @5% concessional duty.
- Critical minerals (incl. cobalt, lithium scrap) exempt from BCD.
- EV & mobile battery manufacturing – 63 new capital goods exempt.
- Shipbuilding raw materials duty exemption extended 10 yrs.
- Leather sector – Wet Blue leather duty-free; Crust leather export duty removed.
- Marine products – Surimi paste duty ↓ from 30% → 5%.
- Extended export timelines for handicrafts, MRO, ship items.