New Delhi, [Feb 1, 2025] – Finance Minister Nirmala Sitharaman is set to present the Union Budget 2025 today, marking a crucial fiscal roadmap for India’s economic trajectory. As the last full budget before the 2026 general elections, this announcement is expected to focus on economic recovery, infrastructure development, job creation, and social welfare.
Live Updates and Key Highlights
- Boost to Economic Growth: The budget is expected to outline new initiatives to accelerate GDP growth, with special emphasis on manufacturing, exports, and digital transformation.
- Taxation Reforms: Anticipation surrounds potential changes in income tax slabs, corporate tax reductions, and incentives for startups and small businesses.
- Infrastructure and Urban Development: Major allocations for highways, railways, and smart cities are expected to enhance India’s connectivity and urban expansion.
- Social Welfare and Healthcare: Increased spending on healthcare, education, and social security schemes may be announced to strengthen India’s human capital.
- Agriculture and Rural Development: Policies aimed at supporting farmers, improving irrigation systems, and boosting agri-tech innovations are likely to be highlighted.
- Technology and Digital India Initiatives: Continued focus on AI, fintech, and digital governance could drive India’s tech ecosystem to new heights.
- Green Energy and Sustainability: With global climate commitments in focus, the government may introduce incentives for renewable energy projects and sustainable infrastructure.
- Defense and National Security: Enhancements in defense budgets, cybersecurity measures, and border security allocations are anticipated.
What to Expect for the Common Man?
- Possible increase in standard deductions and tax exemptions.
- Affordable housing schemes and subsidies.
- Expansion of employment generation programs.
- Lower GST rates on essential goods and services.
Industry Reactions and Market Impact
Stock markets are likely to react sharply to budgetary announcements, particularly in sectors such as banking, real estate, and manufacturing. Analysts predict that reforms focusing on economic stability and investment-friendly policies could drive investor confidence.
Conclusion
As FM Sitharaman delivers the Union Budget 2025, all eyes are on the government’s strategies to navigate economic challenges and propel India towards sustainable growth. Stay tuned for further analysis and expert opinions on how the budget will shape the nation’s financial future.
[Stay Updated for Live Coverage]
Highlights Feb 1, 2025 12:00 PM
Union Budget 2025-26: Key Highlights and Implications
n February 1, 2025, Finance Minister Nirmala Sitharaman presented the Union Budget for the fiscal year 2025-26, outlining a comprehensive plan aimed at bolstering economic growth, enhancing agricultural productivity, and empowering the middle class.he budget introduces several initiatives across various sectors to promote inclusive development and stimulate private investment.
Agriculture and Rural Development
he government has announced a mission to boost the production of pulses and cotton, aiming to achieve self-sufficiency and reduce import dependence.his initiative is expected to enhance farmers’ income and ensure food security.dditionally, the budget proposes an increase in the limit for subsidized credit to farmers, providing them with greater financial support to invest in modern farming techniques and equipment.
Manufacturing and Industry
National Manufacturing Mission has been established to support the “Make in India” initiative, focusing on enhancing the country’s manufacturing capabilities.his mission aims to attract private investment, create employment opportunities, and position India as a global manufacturing hub.he government also plans to set up a fund to support start-ups, encouraging innovation and entrepreneurship.
Infrastructure Development
he budget allocates ₹1.5 trillion in interest-free loans to state governments for infrastructure projects, emphasizing the development of transportation, urban planning, and energy sectors. Maritime Development Fund has been introduced to modernize ports and enhance coastal connectivity, while an Urban Challenge Fund aims to promote sustainable urbanization and smart city initiatives.
Tax Reforms and Middle-Class Relief
n a bid to boost the spending power of the middle class, the budget proposes significant tax reforms.hile specific details are awaited, these reforms are anticipated to reduce the tax burden on individuals, thereby increasing disposable income and stimulating consumption.
Small and Medium Enterprises (SMEs)
To support SMEs, the government has enhanced credit guarantees, facilitating easier access to financing.his move is expected to bolster employment and contribute to economic growth by empowering small businesses to expand their operations.
Energy and Environment
he budget introduces a policy for the development of critical minerals, essential for renewable energy technologies, aiming to reduce dependence on imports and promote sustainable energy solutions.dditionally, the government plans to establish skilling centers to train manpower for the manufacturing sector, ensuring a skilled workforce to meet industry demands.
Financial Inclusion
ith an emphasis on inclusive growth, the budget outlines measures to boost financial inclusion among rural households.his includes expanding access to banking services, providing financial literacy programs, and offering targeted subsidies to uplift marginalized communities.
Conclusion
The Union Budget 2025-26 presents a forward-looking framework aimed at strengthening various sectors of the economy.y focusing on agriculture, manufacturing, infrastructure, and financial inclusion, the government seeks to foster sustainable growth and improve the quality of life for all citizens.
For a detailed breakdown of the budget announcements, you can watch the Finance Minister’s speech here:
Update on Income Tax Slabs
In the Union Budget 2025-26, Finance Minister Nirmala Sitharaman introduced significant reforms to India’s income tax structure, aiming to enhance the spending power of the middle class and stimulate economic growth.
Revised Income Tax Slabs for FY 2025-26:
| Annual Income (₹) | Tax Rate (%) |
|---|---|
| 0 – 4,00,000 | Nil |
| 4,00,001 – 8,00,000 | 5 |
| 8,00,001 – 12,00,000 | 10 |
| 12,00,001 – 16,00,000 | 15 |
| 16,00,001 – 20,00,000 | 20 |
| 20,00,001 – 24,00,000 | 25 |
| Above 24,00,000 | 30 |
Under the new regime, individuals earning up to ₹12 lakh annually are exempt from paying income tax, a move designed to increase disposable income and boost consumer spending.
Key Highlights:
- Standard Deduction: Salaried individuals are entitled to a standard deduction of ₹75,000, further reducing taxable income. pib.gov.in
- Simplification of Tax Structure: The revised tax slabs aim to simplify the tax structure, making it more straightforward for taxpayers to understand their liabilities.
- Encouragement of Savings and Investment: By reducing the tax burden on the middle class, the government aims to encourage higher savings and investments, thereby stimulating economic growth.
Frequently Asked Questions (FAQs):
1. How does the new tax regime affect my take-home salary?
With the increased tax rebate and revised slabs, individuals earning up to ₹12 lakh annually will not pay any income tax, resulting in a higher take-home salary.
2. Are there any changes to deductions under sections like 80C?
The government has not announced specific changes to deductions under sections like 80C in this budget. Taxpayers are advised to consult with financial advisors for personalized guidance.
3. How can I calculate my tax liability under the new regime?
Taxpayers can use the official Income Tax Department’s online calculator to determine their tax liability under the new regime.
4. When do these changes come into effect?
The revised tax slabs and rates are applicable for the financial year 2025-26.
These reforms reflect the government’s commitment to easing the tax burden on citizens and fostering economic activity. Taxpayers are encouraged to review the new slabs carefully to understand their tax obligations and benefits under the updated regime.
